Case Law Details
Rita Malhotra Vs Orris Infrastructure Pvt. Ltd. (NCALT Delhi)
In a recent ruling, the National Company Law Appellate Tribunal (NCLAT) in Delhi addressed the critical issue of whether financial creditors, who are allottees under the Real Estate (Regulation and Development) Act (RERA), must meet specific threshold criteria to file a Section 7 application under the Insolvency and Bankruptcy Code (IBC). The case, Rita Malhotra Vs Bina Chopra, sheds light on the intricate interplay between RERA and IBC, and the conditions under which allottees can initiate corporate insolvency resolution proceedings.
Background of the Case
The appeal, filed under Section 61 of the IBC by the appellant Rita Malhotra, emerged from an order dated 19.09.2023 by the National Company Law Tribunal (NCLT), Principal Bench, New Delhi. The NCLT had dismissed the Section 7 application filed by the appellants to initiate Corporate Insolvency Resolution Process (CIRP) against Orris Infrastructure Pvt Ltd, the corporate debtor. The appellants were aggrieved by the dismissal and sought recourse through the NCLAT.
Appellants’ Submissions
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
