# In the matter of Mrs. Mamatha Vs AMB Infrabuild Pvt. Ltd. & Ors. CA (AT) (Insolvency) 155-2018

> NCLAT judgment dated 2018-11-30. Citation: TCN-2018-NCLAT-00036. The appellant, an allottee of real estate, filed an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 30 Nov 2018
- **Citation:** TCN-2018-NCLAT-00036
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mrs-mamatha-vs-amb-infrabuild-pvt-ltd-ors-ca-b58a01e7

## Summary

### Background

The appellant, an allottee of real estate, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating the Corporate Insolvency Resolution Process (CIRP) jointly against the 1st and 2nd respondents, who are considered the corporate debtors. The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, rejected the application on March 12, 2018, because the application under Section 7 of the IBC cannot be filed jointly against two corporate debtors. The respondents, AMB Infrabuild Pvt. Ltd. and Earth Galleria Pvt. Ltd., had entered into a Collaboration Agreement on May 3, 2013, for the development of a piece of land. A Memorandum of Understanding was reached on June 20, 2014, between Earth Infrastructure Ltd.

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## Facts

Mrs. Mamatha, the appellant and an allottee of real estate, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP). This application was filed jointly against AMB Infrabuild Pvt. Ltd. (1st Respondent) and Earth Galleria Pvt. Ltd. (2nd Respondent), both considered corporate debtors. The Adjudicating Authority rejected the application on March 12, 2018, stating that a joint application against two corporate debtors is not maintainable under Section 7 of the IBC. AMB Infrabuild Pvt. Ltd. and Earth Galleria Pvt. Ltd. entered into a Collaboration Agreement on May 3, 2013, for developing a piece of land, with AMB Infrabuild as the 'Owner' and Earth Galleria as the 'Developer'. A

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## Issues and analysis

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

**Ratio:** The legal principle in question is whether the Insolvency and Bankruptcy Code (IBC)

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**Reasoning:** The Adjudicating Authority rejected the application because it was filed jointly against

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**Interpretation:** The interpretation of Section 7 of the IBC is central to this issue. The

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**Application:** In this specific case, the application was filed jointly against AMB Infrabuild

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## Parties

- **Judges:** S.J. Mukhop…
- **Appellants:** Mama…
- **Respondents:** AMB Infrabuild…

## Timeline

- **2013-05-03 — Collaboration…**: AMB Infrabuild Pvt. Ltd. and Earth Galleria Pvt. Ltd. entered into a Collaboration…
- **2014-06-20 — Memorandum of…**: A Memorandum of Understanding was reached between Earth Infrastructure Ltd. and the…

## 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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