# In the matter of Oragadam City Developers Private Limited IBA-495-2019

> NCLT judgment dated 2019-07-09. Citation: TCN-2019-NCLT-02605. The case involves an Insolvency and Bankruptcy Application (IBA) filed under Section 9 of the…

- **Court:** NCLT
- **Order date:** 9 Jul 2019
- **Citation:** TCN-2019-NCLT-02605
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/oragadam-city-developers-private-limited-iba-495-2019-baa93eb0

## Summary

### Background

The case involves an Insolvency and Bankruptcy Application (IBA) filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s. Affordable Housing International Limited (Operational Creditor) against M/s. Oragadam City Developers Private Limited (Corporate Debtor). The Corporate Debtor allegedly defaulted on paying a claim despite an Arbitration Award passed on 17.04.2017, which awarded USD 25000 to the Applicant. The Applicant and Corporate Debtor entered into a Construction Agreement on 18.05.2012, but the Corporate Debtor allegedly reneged on the agreement obligations. The Applicant incurred expenditure providing services. The matter went before the Supreme Court of India, which appointed Justice Mukul Mudgal as Arbitrator. The Arbitrator passed an

…

## Facts

M/s. Affordable Housing International Limited (Operational Creditor) filed an Insolvency and Bankruptcy Application (IBA) against M/s. Oragadam City Developers Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The basis for the application was the Corporate Debtor's alleged default in paying a claim. An Arbitration Award was passed on 17.04.2017, awarding USD 25000 to the Applicant, payable within six weeks from 17.04.2017, with interest at 2% above the current rate. The Applicant and Corporate Debtor had entered into a Construction Agreement on 18.05.2012 for a project in Innogeo City, Villagam Village, Oragadam. The Corporate Debtor allegedly reneged on the agreement, despite the Applicant having started implementing its

…

## Issues and analysis

### Issue 1: Whether the Applicant (Operational Creditor) has proved the existence of debt and default on the …

**Ratio:** The existence of a valid and enforceable Arbitration Award, coupled with the Corporate

…

**Reasoning:** The court relied on the Arbitration Award dated 17.04.2017, which directed the Corporate

…

**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

…

**Application:** In this case, the Arbitration Award established the debt owed by the Corporate

…

## Parties

- **Judges:** B.S.V. Prakash…
- **Appellants:** Affordable…
- **Respondents:** Oragadam City…
- **Advocates:** Shri. T.K.…; Shri. Srinath…; +1 more

## Timeline

- **2012-05-18 — Construction A…**: Applicant and Corporate Debtor…
- **2017-04-17 — Arbitration…**: Arbitration Award passed, directing Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/oragadam-city-developers-private-limited-iba-495-2019-baa93eb0