# In the matter of Orris Infrastructure Pvt. Ltd.

> NCLT judgment dated 2023-09-19. Citation: TCN-2023-NCLT-01537. The case involves an application filed by Ms. Rita Malhotra and Ors., financial creditors,…

- **Court:** NCLT
- **Order date:** 19 Sept 2023
- **Citation:** TCN-2023-NCLT-01537
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/orris-infrastructure-pvt-ltd-e87fe1f8

## Summary

### Background

The case involves an application filed by Ms. Rita Malhotra and Ors., financial creditors, against M/s Orris Infrastructure Pvt. Ltd., the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). The application was initially filed on 23.01.2019. The financial creditors claimed a default of Rs. 3,60,612/-. The corporate debtor was incorporated on 26.07.2006 and is involved in real estate activities. The applicants had entered into an agreement with the corporate debtor for allotment of office space in a commercial project known as Floreal Tower. The agreement included an assured return on the investment. The applicants alleged breach of the agreement due to non-payment of the

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## Facts

Ms. Rita Malhotra and Ms. Bina Chopra (the applicants) entered into an agreement with M/s Orris Infrastructure Pvt. Ltd. (the corporate debtor) for allotment of office space in the Floreal Tower project. The applicants paid Rs. 2,00,000/- on 14.04.2010, Rs. 5,00,000/- on 17.04.2010, and Rs. 22,98,000/- on 24.04.2010. An agreement was executed on 24.04.2010, allotting 1071 sq. ft. of office space at Rs. 2799.253 per sq. ft., totaling Rs. 29,98,000. A Space Buyers Agreement was executed on 26.04.2010. The agreement stipulated an assured return of Rs. 60/- per sq. ft. per month. The applicants alleged that the corporate debtor breached the agreement by failing to pay the assured return, resulting in a default of Rs. 3,60,612/-. The applicants initially filed a petition

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## Issues and analysis

### Issue 1: Whether the applicants, being joint allottees of a single unit in a real estate project, satisfy …

**Ratio:** The amended Section 7 of the IBC requires that financial creditors who are allottees

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**Reasoning:** The court reasoned that the applicants, being joint allottees of a single unit, do not

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**Interpretation:** The court interpreted the amended Section 7 of the IBC and the relevant

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**Application:** In this case, the applicants are joint allottees of Unit No. 413 in the Floreal

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Rita Mal…
- **Respondents:** M/s. Orris…

## Timeline

- **2019-01-23 — Application…**: The present application was filed before the Adjudicating Authority under Section 7 of…
- **2018-06-01 — Previous Petit…**: A petition under section 7 of the IBC bearing no. IB-640(PB)/2018 was filed against the…

## 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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