# In the matter of Orior Developers and Infrastructure Pvt. Ltd. CP (IB) 1529 (ND)-2019

> NCLT judgment dated 2022-01-28. Citation: TCN-2022-NCLT-04348. The application was initiated by financial creditors, led by Col. C.D. Sharma, against Orior…

- **Court:** NCLT
- **Order date:** 28 Jan 2022
- **Citation:** TCN-2022-NCLT-04348
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/orior-developers-and-infrastructure-pvt-ltd-cp-ib-1529-nd-2019-0bcd2ca8

## Summary

### Background

The application was initiated by financial creditors, led by Col. C.D. Sharma, against Orior Developers and Infrastructure Private Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditors claimed default on payments for residential plots in the 'Bhaskar Enclave -II' project launched by the corporate debtor in 2006. The corporate debtor, incorporated on 27.06.2006, allegedly concealed facts and engaged in fraudulent behavior, leading to delays in project completion. The financial creditors, consisting of 101 applicants, made payments towards the purchase of residential plots. The financial creditors submitted documents, including deposit registration forms, intimation letters, and possession letters, to

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## Facts

In 2006, Orior Developers and Infrastructure Private Limited launched a residential township project named 'Bhaskar Enclave -II' in Jaipur, Rajasthan. 101 financial creditors made payments to the corporate debtor for residential plots. The corporate debtor allegedly concealed facts and delayed project completion, citing the non-issuance of 'Patta'. The financial creditors submitted deposit registration forms, intimation letters, and possession letters as evidence of their agreement. They also relied on WhatsApp conversations to prove the corporate debtor's admission of liability. In 2018, the financial creditors discovered that a third party was selling plots in the same project, leading them to believe the corporate debtor was engaging in fraudulent activities. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court considered the submissions and documents presented by the financial creditors

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**Interpretation:** Section 7 of the IBC provides the mechanism for financial creditors to initiate

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**Application:** The court applied Section 7 of the IBC to the facts of the case and found that

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; AVINASH K.…
- **Appellants:** COL. C.D. SHARMA…
- **Respondents:** M/S ORIOR…

## Timeline

- **2006-01-01 — Project L…**: Corporate Debtor launched 'Bhaskar…
- **2006-06-27 — Incorporation of…**: Orior Developers and Infrastructure…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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