https://www.taxtmi.com/caselaws?id=791321 Section 7 of the Insolvency and Bankruptcy Code requires a financial debt and default, but the Code is not meant to enforce individual contractual claims or act as a recovery forum. Where loan disbursal was made directly to a builder under a quadripartite arrangement, and repayment, construction, delivery, refund and transfer obligations were interlinked, the dispute was substantially contractual in nature. Because the matter was already tied to proceedings before the Debt Recovery Tribunal, the facts did not show a straightforward financial debt default justifying initiation of CIRP. On those facts, invocation of the insolvency process was impermissible and the challenge to the NCLAT order failed. en-us Thu, 07 May 2026 00:00:00 +0530 Sat, 09 May 2026 07:13:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791321 Section 7 of the Insolvency and Bankruptcy Code requires a financial debt and default, but the Code is not meant to enforce individual contractual claims or act as a recovery forum. Where loan disbursal was made directly to a builder under a quadripartite arrangement, and repayment, construction, delivery, refund and transfer obligations were interlinked, the dispute was substantially contractual in nature. Because the matter was already tied to proceedings before the Debt Recovery Tribunal, the facts did not show a straightforward financial debt default justifying initiation of CIRP. On those facts, invocation of the insolvency process was impermissible and the challenge to the NCLAT order failed. Case-Laws IBC Thu, 07 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791321