# In the matter of ALM Infotech City Private Limited

> NCLT judgment dated 2024-07-30. Citation: TCN-2024-NCLT-00926. The ILD Owners Welfare Association filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 30 Jul 2024
- **Citation:** TCN-2024-NCLT-00926
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alm-infotech-city-private-limited-0960f01c

## Summary

### Background

The ILD Owners Welfare Association filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. ALM Infotech City Private Limited, the Corporate Debtor. The applicant claimed that the corporate debtor collected Rs. 2.95 crores as interest-free maintenance deposit from the residents of the ILD Trade Centre and failed to hand over the amount to the applicant as per the conveyance deed. The applicant contended that this unpaid maintenance deposit constitutes a financial debt.

## Facts

The ILD Owners Welfare Association filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s. ALM Infotech City Private Limited. The applicant claimed that the corporate debtor collected Rs. 2.95 crores as interest-free maintenance deposit from the residents of the ILD Trade Centre. The applicant alleged that the corporate debtor failed to hand over the said amount to the applicant/Financial Creditor (RWA) as per the Conveyance Deed, despite repeated requests. The applicant argued that the interest-free maintenance deposit is in the nature of financial debt. The corporate debtor collected the maintenance deposit from the owners of the apartments in the project. The conveyance deed, dated 09.12.2015, stipulated that

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## Issues and analysis

### Issue 1: Whether the interest-free maintenance deposit collected by the Corporate Debtor from the residents …

**Ratio:** The essential elements of a 'financial debt' under Section 5(8) of the IBC, 2016, require

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**Reasoning:** The Adjudicating Authority reasoned that the maintenance deposit is similar to money paid

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**Interpretation:** Section 5(8) of the IBC, 2016, defines 'financial debt' as a debt along with

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**Application:** In this case, the maintenance deposit was collected for the purpose of

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** ILD Owners…
- **Respondents:** ALM Infotech City…; M/s. ALM Infotech…

## Timeline

- **2015-12-09 — Execution of Conveyance…**: A Conveyance Deed was executed between…
- **2024-05-08 — Order by Adjudicating…**: The Adjudicating Authority directed the Ld. Counsel for the Applicant to file an…

## 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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