# In the matter of Ivrcl Limited

> NCLT judgment dated 2025-02-05. Citation: TCN-2025-NCLT-00522. This Interlocutory Application was filed by the Successful Bidder of the Corporate Debtor…

- **Court:** NCLT
- **Order date:** 5 Feb 2025
- **Citation:** TCN-2025-NCLT-00522
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ivrcl-limited-ac2cc2d8

## Summary

### Background

This Interlocutory Application was filed by the Successful Bidder of the Corporate Debtor (IVRCL Limited), sale of which as a going concern to the Applicant was approved by the NCLT Authority on 15.06.2022 for a consideration of Rs 1200 Crores. The Applicant had deposited Rs 50 crores as EMD and a timeline for payment of the remaining Rs 1150 crores was fixed in the order approving the sale of the CD as going concern. The Applicant is also stated to have made part payment of Rs 100 Crores on 26.09.2022 towards the balance consideration of Rs 1150 crores. Remaining amount of Rs 1050 crores has not been paid till the passing of this order. Sale of the CD as a going concern, to the Applicant has remained inconclusive, and the CD continues to be under the control and

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## Facts

M/s Raghava Square Private Limited, the Successful Bidder of IVRCL Limited, filed an Interlocutory Application seeking certain reliefs related to the liquidation of IVRCL Limited. The sale of IVRCL Limited as a going concern to the Applicant was approved on 15.06.2022 for Rs 1200 Crores, with Rs 50 Crores paid as EMD. The Applicant also made a part payment of Rs 100 Crores on 26.09.2022 towards the balance consideration of Rs 1150 Crores. The Applicant claims that its bid was based on the understanding that all assets disclosed in the Virtual Data Room (VDR), including those owned by subsidiaries, joint ventures, and associates, would be included in the sale, as reflected in their 'Business Plan'. The Applicant sought to restrain the lenders (Respondents 3 to 29) from

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## Issues and analysis

### Issue 1: Whether the assets of the subsidiaries, joint venture partners, and associates of the Corporate …

**Ratio:** Section 36(4)(d) of the IBC explicitly excludes the assets of any Indian or foreign

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**Reasoning:** The NCLT relied on Section 36(4)(d) of the IBC, which clearly states that the assets of

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**Interpretation:** Section 36(4)(d) is interpreted as a substantive provision of law that

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**Application:** The NCLT applied Section 36(4)(d) to the facts of the case, holding that the

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** M/S RAGHAVA…
- **Respondents:** IVRCL Li…; M/s. IVRCL…

## Timeline

- **2022-06-15 — Approval of Sale as…**: NCLT approved the sale of the Corporate Debtor (IVRCL Limited) as a going concern to the…
- **2022-09-26 — Part Payment by…**: The Applicant made a part payment of Rs 100 Crores towards the balance consideration of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 36(4) — Liquidation estate](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-36)

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