# In the matter of ALM Infotech City Private Limited

> NCLT judgment dated 2024-07-30. Citation: TCN-2024-NCLT-00916. 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-00916
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alm-infotech-city-private-limited-a65665a9

## 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 association 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 association as per the conveyance deed, despite repeated requests. The applicant argued 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 Corporate Debtor, a developer, had collected Rs. 2.95 crores as interest-free maintenance deposit from the residents of the ILD Trade Centre. As per the conveyance deed, this amount was to be handed over to the Applicant/Financial Creditor (RWA). The Corporate Debtor failed to do so despite repeated requests. The applicant argued that this unpaid maintenance deposit constitutes a financial debt. A conveyance deed dated 09.12.2015 was executed between the Allottees and the Corporate Debtor. Clause 26 of the said Deed provides that the financial debt is to be handed over to the Financial

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## Issues and analysis

### Issue 1: Whether the interest-free maintenance deposit collected by the Corporate Debtor qualifies as a …

**Ratio:** The essential elements for a debt to be considered a 'financial debt' under Section 5(8)

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**Reasoning:** The court reasoned that the maintenance corpus collected by the Respondent was to ensure

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**Interpretation:** The court interpreted Section 5(8) of the IBC, 2016, in light of the Supreme

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**Application:** The court applied the ratio to the facts of the case, noting that the

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## Parties

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

## Timeline

- **2015-12-09 — Execution of Conveyance…**: A Conveyance Deed was executed between…
- **2024-04-28 — Affidavit…**: The Ld. Counsel for the Applicant filed an affidavit in compliance with Order dated…

## 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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