TaxTMI 
TaxTMI 
2026 (4) TMI 1670
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....lication, being IA No. 617/2026, where the Appellant sought a condonation of 1 day of delay that, has chanced in preferring the company appeal. Having considered the grounds taken therein we feel that the 1 day delay that has chanced in preferring the appeal since has been satisfactorily explained, the same deserves to be condoned. Delay is condoned. Accordingly, IA No. 617/2026 would stand disposed of. 2. We proceeded to hear the Appellant on merits of the company appeal In any judicial proceedings the basic principles in respect of a prayer for an impleadment or an intervention and the grant of the same by the Courts are primarily restricted to be governed by the governing principles laid down under Order I Rule 10 of the CPC. Even tho....
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....d not be the necessary party. 5. The justification behind this concept is that, in any proceedings which determines a certain right, if a party has not been chosen as to be a party by the Applicant or Petitioner to the proceedings, any consequences which would be flowing from the orders that would be passed on the same, would not be having any binding effect on the said person, even if he is not impleaded or permitted to be intervene in the proceedings. 6. Such is the issue involved in the instant company appeal, where the Appellant / Applicant, to the intervention application puts a challenge to the impugned order of 02.02.2026, as it was passed by the Ld. NCLT Hyderabad Bench, on Intervention Petition (IBC) NO.2/2026, preferred in C....
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....ial debt is owed and includes a person to whom such debt has been legally assigned. 9. In the instant case, the Appellant herein doesn't owe a financial debt, at the behest of the Financial Creditor, nor there is any direct legal assignment of any loan or a debt to the present proposed intervener by the Financial Creditor. In that eventuality, when the Financial Creditor invokes Section 7 of the Code, for initiation of the CIRP, he is required to file an application against the Corporate Debtor and that too, on an occurrence of an event of default. If a logical interpretation is given to Section 7, the entitlement of the Financial Creditor to initiate Section 7 of the Code, is being restricted to be against the Corporate Debtor as de....
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....es to the proceedings under Section 7 of the Code. Even otherwise also, the home buyers who may be multiple in number, may have an occasion to abuse the process and that too, in a proceedings in, which they would not have any effective say, since neither being a Financial Creditor nor a beneficiary of a debt extended by the Financial Creditor nor they acquire a status of being the Corporate Debtor for whom alone the proceedings under Section 7 are to be initiated as per the provisions of the Code itself. 12. Thus, merely because there happens to be an agreement for sale in his favour, will not be an exclusive reason to make the Applicant as to be a necessary party who is required to be impleaded in a proceeding under Section 7 of the Cod....