Orris Infrastructure

The National Company Law Appellate Tribunal (NCLAT) has ruled that the Insolvency and Bankruptcy Code is “not a recovery mechanism” while it rejected a request to file for insolvency against Orris Infrastructure due to an alleged default of Rs 3.60 lakh.

The NCLAT bench noted that, in accordance with the agreement, Orris Infrastructure had already made the entire and final payment to the buyer of the office space/retail unit in place of the guaranteed returns for the assigned unit. A contract between the applicants and the real estate company contained monthly assured returns. The building was finished in 2013, and the occupation certificate was obtained in 2017. This put an end to the time during which promised returns would be paid in 2020.

According to the insolvency tribunal, the cash has been paid in excess of the default amount, and the applicant’s attorney has also confirmed receiving the demand draught from the real estate company that was building the Floreal Tower commercial building complex at Sector 83 in Gurgaon (Haryana).

Prior to this, it had declined to consider an insolvency case against Wipro Ltd. and a plea against United Telecoms, stating that the bankruptcy legislation could not be utilised to collect debt from solvent corporations.