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The National Company Law Tribunal (NCLT) observed that Insolvency & Bankruptcy Code (IBC) cannot be used as a ‘tool for recovery’. The Principal Bench of the NCLT was hearing the plea for initiating insolvency against Orris Infrastructure over an alleged default of Rs 3.60 lakh. 

The NCLT bench observed that the purchaser of the Office space/Retail Unit has already received full and final payment from Orris Infrastructure in lieu of the assured returns towards the allotted unit, as per the agreement. The amount has been paid in excess of the default amount and counsel for the applicant has also acknowledged the receipt of the demand draft from the realty firm, which was developing a commercial building complex, known as Floreal Tower, at Sector 83, Gurgaon (Haryana). The applicants entered into an agreement on April 24, 2010, and the Space Buyers agreement was signed with Orris Infrastructure.

It was mutually agreed between the parties that the realty firm would pay monthly assured returns to the applicants up to the first 36 months after the completion of the building or till the date the office space is put on lease, whichever is earlier. The construction of the building for the Floreal Tower Project was completed by December 2013 and thereafter occupation certificate was received on August 16, 2017. Therefore, the 3-year period for the purpose of paying assured return in terms of the occupation certificate ends on August 16, 2020.