# In the matter of Veracious Builders & Developers Private Limited

> NCLT judgment dated 2025-10-07. Citation: TCN-2025-NCLT-01532. 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-01532
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/veracious-builders-developers-private-limited-49a9b68a

## Summary

### Background

The case involves a contempt application filed by the Liquidator of Veracious Builders and Developers Private Limited against its 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 into the liquidation account.

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, but it has not been effectively listed before the NCLAT.

The Corporate Debtor is involved in real estate development.

A liquidation order was passed against the Corporate Debtor on 17.01.2020.

The Liquidator had filed PUFE IA 302 of 2020 against the respondents, which was allowed on 14.12.2023.

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## Issues and analysis

### Issue 1: Whether contempt proceedings are the appropriate first recourse when an alternative remedy, such as …

**Ratio:** Contempt proceedings should not be the first recourse when an alternative remedy, such as

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**Reasoning:** The court relied on Kapildeo Prasad Sah & Ors. versus State of Bihar & Ors.

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**Interpretation:** The court interpreted that while it has the power to initiate contempt

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**Application:** The court applied this principle by dismissing the contempt application as

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## Parties

- **Judges:** Sunil Kumar…; Radhakrishna…
- **Appellants:** Reddarrow…
- **Respondents:** Veracious…; Veracious…; +3 more
- **Other parties:** Shirley M…

## Timeline

- **2019-07-30 — Petition…**: A petition was filed against the Corporate Debtor under Section 9 of the IBC, which was…
- **2020-01-17 — Liquidation…**: Liquidation order of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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