# In the matter of Rahul Sayal Vs. S.S Conbuild Pvt. Ltd. CA(AT)(Ins)No. 221 of 2019

> NCLAT judgment dated 2019-12-04. Citation: TCN-2019-NCLAT-00058. The Appellant, Rahul Sayal, filed an application under Section 7 of the Insolvency and…

- **Court:** NCLAT
- **Order date:** 4 Dec 2019
- **Citation:** TCN-2019-NCLAT-00058
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rahul-sayal-vs-ss-conbuild-pvt-ltd-ca-73fa6cff

## Summary

### Background

The Appellant, Rahul Sayal, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process against S.S. Conbuild Pvt. Ltd. The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench-II, rejected the application via an order dated January 24, 2019, leading to the present appeal.

## Facts

Rahul Sayal, the Appellant, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against S.S. Conbuild Pvt. Ltd., the Corporate Debtor. The Appellant claimed that Rs. 1,21,26,500/- was due despite reminders. The Respondent, S.S. Conbuild Pvt. Ltd., argued that the principal amount of Rs. 90,12,000/- had been repaid. The Adjudicating Authority noted that the Respondent had made several payments: Rs. 15,00,000/- on May 20, 2015, Rs. 45,00,000/- via three cheques in July and November 2015, and further payments of Rs. 10,00,000/-, Rs. 11,00,000/-, and Rs. 91,14,500/-. The Appellant sought a return of the allotment amount rather than the flat itself. The Adjudicating Authority rejected the

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** An application under Section 7 of the Insolvency and Bankruptcy Code is not maintainable

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**Reasoning:** The court reasoned that the Appellant's primary intention was to get back the money paid

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**Interpretation:** This interpretation clarifies that Section 7 of the IBC is intended to address

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**Application:** In this case, the Appellant's application under Section 7 was deemed not

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** Rahul S…
- **Respondents:** S.S. Conbuild…

## Timeline

- **2015-05-20 — Payment by Re…**: The Respondent paid a sum of Rs. 15,00,000/-…
- **2015-07-14 — Payment by Re…**: The Respondent paid a sum of Rs. 45,00,000/- to the Appellant through three different…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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