The NCLAT, in Sushil Ansal vs. Ashok Tripathi, examined whether a decree holder can initiate corporate insolvency resolution for execution of a decree. Although a decree holder falls within the definition of creditor under section 3(10) of the IBC, the tribunal held that CIRP cannot be used as a substitute for execution.
The respondents had obtained a UP RERA recovery order against Ansal Infrastructure, then approached the NCLT under section 7 rather than execution proceedings. NCLT admitted the application; NCLAT analysed the definitions of financial creditor and financial debt, including the deeming fiction for real-estate allottees.