# In the matter of Right Tower Pvt. Ltd. CA(IB) No. 1390-KB-2019 in C.P. (IB) No. 505-KB-2017

> NCLT judgment dated 2019-11-08. Citation: TCN-2019-NCLT-00657. The case pertains to an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Nov 2019
- **Citation:** TCN-2019-NCLT-00657
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/right-tower-pvt-ltd-caib-no-1390-kb-2019-in-cp-ib-no-505-kb-2017-67d9860c

## Summary

### Background

The case pertains to an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. M/s. SREI Infrastructure Finance Limited filed a Company Petition CP(IB) No. 505/KB/2017 under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor M/s. Right Towers Private Limited. The Corporate Insolvency Resolution Process was initiated on July 24, 2019, and Sri Rakesh Kumar Agarwal was appointed as the Insolvency Resolution Professional (IRP).

## Facts

M/s. SREI Infrastructure Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Right Towers Private Limited. The CIRP was initiated on July 24, 2019, and Sri Rakesh Kumar Agarwal was appointed as the Insolvency Resolution Professional (IRP). The IRP received claims from two financial creditors: M/s. SREI Infrastructure Pvt. Ltd. for Rs. 140,98,23,113/- and M/s. Environ Energy Corporate India Pvt. Ltd. for Rs. 3,46,00,000/-. A Committee of Creditors (CoC) was formed on August 13, 2019. The CoC discussed the ratification of remuneration and expenses made by the IRP and confirmed the IRP as the Resolution Professional (RP). The RP appointed M/s. H Modi &

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Right Towers Private Limited, should be liquidated due to the …

**Ratio:** Section 54(2) of the I&B Code allows for the dissolution of a corporate debtor when

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**Reasoning:** The CoC concluded that the Corporate Debtor did not have any assets and its operation is

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**Interpretation:** Section 54(2) of the I&B Code provides the legal basis for dissolving a

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**Application:** The Tribunal applied Section 54(2) of the I&B Code to the facts of the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Respondents:** M/S. RIGHT TOWERS…

## Timeline

- **2017-01-01 — Company Petiti…**: M/s. Srei Infrastructure Finance Limited filed Company Petition CP(IB) No. 505/KB/2017…
- **2019-07-24 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated, and Sri Rakesh Kumar…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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