# Approval of Resolution Plan - Neueon Towers Limited

> NCLT judgment dated 2024-10-23. Citation: TCN-2024-NCLT-00366. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Neueon Towers Ltd.…

- **Court:** NCLT
- **Order date:** 23 Oct 2024
- **Citation:** TCN-2024-NCLT-00366
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-neueon-towers-limited-3218ec9c

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Neueon Towers Ltd. initiated based on an application by IDBI Bank Ltd. The Resolution Professional filed an application under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, seeking approval of the resolution plan submitted jointly by Preca Solutions India Private Limited, Dr. Madala Srinivasu, and Ms. Madala Anithaa, which was approved by the Committee of Creditors (COC) with 95.89% of the voting share. The CIRP was initiated on 03.06.2019. The resolution plan was initially rejected by the tribunal on 14.10.2021 and liquidation was ordered, but this order was set aside by NCLAT Chennai on 12.06.2023, remanding the matter back to the Adjudicating Authority for approval of the

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Neueon Towers Ltd. based on an application by IDBI Bank Ltd. The CIRP commenced on 03.06.2019. Dr. Madurai Sundaram Sankar was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (COC) was constituted on 24.06.2019, comprising nine financial creditors with an aggregate claim of Rs. 3407,25,26,645-77. The COC approved a resolution plan submitted jointly by M/s. Preca Solutions India Private Limited, Dr. Madala Srinivasu, and Ms. Madala Anithaa, with 95.89% voting share. The resolution plan was initially rejected by the tribunal on 14.10.2021, leading to an order for liquidation. However, this order was set aside by NCLAT Chennai on 12.06.2023, and the matter was

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## Issues and analysis

### Issue 1: Whether the resolution plan satisfies the requirements of Section 30(2) of the Insolvency and …

**Ratio:** Section 30(2) of the IBC specifies the mandatory requirements that a resolution plan must

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**Reasoning:** The tribunal examined the resolution plan to ensure that it complied with all the

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**Interpretation:** Section 30(2) is interpreted as setting the minimum standards for a resolution

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**Application:** The tribunal found that the resolution plan provided for the payment of CIRP

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Respondents:** Neueon Towe…

## Timeline

- **2019-06-03 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2019-06-24 — COC Consti…**: Committee of Creditors (COC)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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