# In the matter of Veracious Builders & Developers Private Limited

> NCLT judgment dated 2025-10-07. Citation: TCN-2025-NCLT-01534. The case involves a contempt application filed by the Liquidator of Veracious Builders and…

- **Court:** NCLT
- **Order date:** 7 Oct 2025
- **Citation:** TCN-2025-NCLT-01534
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/veracious-builders-developers-private-limited-0b2adb7f

## Summary

### Background

The case involves a contempt application filed by the Liquidator of Veracious Builders and Developers Private Limited against the suspended Directors for non-compliance with an order dated 14.12.2023, which required them to deposit/contribute approximately Rs. 13 crore into the liquidation account. The respondents had filed an appeal against the order, but it has not been effectively listed.

## Facts

The Liquidator of Veracious Builders and Developers Private Limited filed a contempt application against the suspended Directors for non-compliance with an order to deposit Rs. 13 crore.

The order in question was dated 14.12.2023 and was passed under Section 66 of the IBC.

The Respondents filed an appeal against the order dated 14.12.2023, but it has not been effectively listed before the NCLAT.

The liquidation of the Corporate Debtor commenced on 17.01.2020.

The Corporate Debtor is a company involved in real estate development.

The Respondents are Promoters and members of the suspended Board of Directors of the Corporate Debtor.

A petition under Section 9 of the IBC was admitted against the Corporate Debtor on 30.07.2019.

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## Issues and analysis

### Issue 1: Whether contempt proceedings are the appropriate first recourse when an execution petition could …

**Ratio:** Contempt proceedings are not a

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**Reasoning:** The court referred to Kapildeo Prasad Sah & Ors. versus State of Bihar & Ors.

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**Interpretation:** The court interpreted that Section 424(3) of the Companies Act, 2013 empowers

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**Application:** The court applied this principle by holding that the contempt application was

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## Parties

- **Judges:** Sunil Kumar…; Radhakrishna…
- **Appellants:** Reddarrow…
- **Respondents:** Veracious…; Veracious…; +2 more
- **Other parties:** Shirley M…

## Timeline

- **2019-07-30 — Admission of Section 9…**: A petition under Section 9 of the IBC was…
- **2020-01-17 — Liquidation…**: Liquidation order of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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