# RDB Realty & Infrastructure Limited vs. Uttar Pradesh State Industrial Development Authority (UPSIDA) & Mr. Arun Gupta, Liquidator, M/s. L.M.L. Limited

> NCLT judgment dated 2026-09-02. Citation: TCN-2026-NCLT-00995. RDB Realty & Infrastructure Limited (Applicant/Auction Purchaser) purchased properties of M/s…

- **Court:** NCLT
- **Order date:** 2 Sept 2026
- **Citation:** TCN-2026-NCLT-00995
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-allahabad/rdb-realty-infrastructure-limited-vs-ms-lml-limited-7mpcb

## Summary

### Background

RDB Realty & Infrastructure Limited (Applicant/Auction Purchaser) purchased properties of M/s L.M.L. Limited (Corporate Debtor) in liquidation. Uttar Pradesh State Industrial Development Authority (UPSIDA), an admitted operational creditor, demanded pre-CIRP dues from the Applicant as a condition for property transfer, which the Applicant paid under protest.

## Facts

M/s L.M.L. Limited (Corporate Debtor) was admitted into liquidation on March 23, 2018.

Uttar Pradesh State Industrial Development Authority (UPSIDA), Respondent No.1, submitted a claim of Rs.2,77,12,397/- against the Corporate Debtor, which was admitted in full by the Liquidator as an "Operational Creditor".

The Liquidator issued an auction notice on March 2, 2023, leading to an e-auction on April 6, 2023.

RDB Realty & Infrastructure Limited (Applicant) was declared the successful bidder for properties A1, A2, A3, A4, E16A, E30, E30A, 3C-6, C7, C8, C9, C10 Site-II, Panki Industrial Area, Kanpur.

A sale certificate was issued to the Applicant on July 7, 2023, on an 'as is where is basis' and 'no recourse basis', and possession was handed over on July 18, 2023.

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## Issues and analysis

### Issue 1: Whether the amount paid by the Applicant under protest to Respondent No.1/UPSIDA is liable to be …

**Ratio:** Pre-CIRP dues of the Corporate Debtor are to be dealt with under the waterfall mechanism

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**Reasoning:** The demand relates to the period prior to CIRP and sale certificate issuance. UPSIDA's

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**Interpretation:** The terms "As is where is", "As is what is", "Whatever

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**Application:** The NCLT applied the principle from Bhatpara Municipality Th. Chairperson v.

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## Parties

- **Judges:** Sh. Praveen…; Sh. Ashish…
- **Appellants:** RDB Realty &…
- **Respondents:** M/s. L.M.L.…; Uttar Pradesh…; +1 more
- **Other parties:** Arun G…
- **Advocates:** Babita…; Sh. Shubham…; +1 more

## Timeline

- **2018-03-23 — Liquidation Com…**: M/s. L.M.L. Limited (Corporate…
- **2021-04-30 — Demand Letter…**: Respondent No.1/UPSIDA addressed demand letters to the Liquidator regarding outstanding…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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