# In the matter of Orchid HousingInfra LLP C.P.(IB)-46(MB)-2018

> NCLT judgment dated 2022-07-08. Citation: TCN-2022-NCLT-01813. Vyankatesh Construction, an unregistered partnership firm (Operational Creditor), filed an…

- **Court:** NCLT
- **Order date:** 8 Jul 2022
- **Citation:** TCN-2022-NCLT-01813
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/orchid-housinginfra-llp-cpib-46mb-2018-3a798aec

## Summary

### Background

Vyankatesh Construction, an unregistered partnership firm (Operational Creditor), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Orchid Housing Infra LLP (Corporate Debtor) for defaulting on a principal amount of ₹1,48,13,754, with interest of ₹3,55,876, aggregating to ₹1,51,69,630 as of 2017-11-10. The Corporate Debtor issued work and purchase orders to the Operational Creditor during the financial years 2015-16 and 2016-17 for construction and supply work. The Operational Creditor issued a Section 8 notice, which the Corporate Debtor replied to, denying the amount claimed and raising disputes regarding the quality and nature of the work. The Corporate Debtor also

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## Facts

Vyankatesh Construction, an unregistered partnership firm, claimed a default of ₹1,51,69,630 from Orchid Housing Infra LLP, a Corporate Debtor, as of 2017-11-10. This amount included principal and interest related to construction and supply work performed by Vyankatesh Construction for Orchid Housing Infra LLP during the financial years 2015-16 and 2016-17. The work involved construction of building structures, supply of Gabion Box Cages, and other civil works at Sunshine Swapna Nagari. Vyankatesh Construction issued a Section 8 notice on 2017-11-14, which was delivered on 2017-11-17. Orchid Housing Infra LLP replied on 2017-11-22, denying the amount and claiming deficiencies in the work. Orchid Housing Infra LLP argued that Vyankatesh Construction was an unregistered

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## Issues and analysis

### Issue 1: Whether an unregistered partnership firm can …

**Ratio:** Section 69(2) of the Indian Partnership Act, 1932, states that 'No suit to enforce a

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**Reasoning:** The court relied on previous decisions stating that applications filed under the IBC are

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**Interpretation:** The term 'suit' under Section 69(2) of the Partnership Act is interpreted

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**Application:** Even though Vyankatesh Construction is an unregistered firm, the court

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Vyankatesh…
- **Respondents:** Orchid Housing…
- **Advocates:** Rohit G…; Rohan…

## Timeline

- **2014-01-01 — Service Agr…**: Service agreement between…
- **2015-09-15 — Work Order Is…**: Date of issue of the work order,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 69 — Punishment for transactions defrauding creditors](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-69)

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