# In the matter of Rajputana Constructions Pvt. Ltd. vs. Rajasthan Land Holdings Ltd. and Ors.

> NCLAT judgment dated 2025-05-16. Citation: TCN-2025-NCLAT-00028. The case involves two appeals filed under Section 61 of the Insolvency and Bankruptcy Code…

- **Court:** NCLAT
- **Order date:** 16 May 2025
- **Citation:** TCN-2025-NCLAT-00028
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajputana-constructions-pvt-ltd-vs-rajasthan-land-holdings-ltd-and-ors-6b2cce47

## Summary

### Background

The case involves two appeals filed under Section 61 of the Insolvency and Bankruptcy Code (IBC) arising from an order dated 2023-04-20 passed by the National Company Law Tribunal (NCLT), Jaipur Bench. The NCLT terminated the Corporate Insolvency Resolution Process (CIRP) of M/s Rajasthan Land Holdings Ltd. (RLHL) and reduced the fees payable to the Resolution Professional (RP). Company Appeal No. 853 of 2023 was filed by the Operational Creditor, M/s Rajputana Constructions Pvt. Ltd. (RCPL), and Company Appeal No. 785 of 2023 was filed by the RP, both aggrieved by the NCLT's order. The CIRP was initiated based on a Section 9 petition filed by RCPL. ITNL, a related party, filed a claim of Rs 181 Cr, which was disputed, leading to litigation and delays. The Adjudicating

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## Facts

M/s Rajasthan Land Holdings Ltd. (RLHL) was a wholly-owned subsidiary of M/s Road Infrastructure Development Company of Rajasthan (RIDCOR). IL&FS Transportation Networks Ltd. (ITNL) bought the shareholding of RLHL from RIDCOR in 2016, which was transferred to a subsidiary, IL&FS Company Pario Developers Pvt. Ltd. The CIRP was initiated on 2019-09-24 based on a Section 9 petition by M/s Rajputana Constructions Pvt. Ltd. (RCPL), an operational creditor with a claim of Rs 23.97 lakhs. The Committee of Creditors (CoC) comprised RCPL, M/s HI Line Buildcon Pvt. Ltd., and S. Bhandari & Co. ITNL filed a claim of Rs 181 Cr, which was treated as a related-party financial debt. The RP admitted the claim of ITNL as Financial Creditor but did not admit them into the CoC

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in …

**Ratio:** The ultimate purpose of IBC is to facilitate insolvency resolution so as to put the

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**Reasoning:** The Adjudicating Authority found that the CoC, particularly RCPL, acted with ulterior

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**Interpretation:** The Adjudicating Authority has the power to terminate the CIRP if it finds that

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**Application:** In this case, the Adjudicating Authority found that the CoC was acting with

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** M/s Rajputana…
- **Respondents:** M/s Rajasthan…; M/s. Rajasthan…

## Timeline

- **2016-01-01 — Shareholding…**: ITNL bought the shareholding of RLHL from RIDCOR, transferred to IL&FS Company Pario…
- **2019-09-24 — CIRP Init…**: CIRP initiated based on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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