# In the matter of Kvir Towers Private Limited

> NCLT judgment dated 2024-02-20. Citation: TCN-2024-NCLT-02514. The application is filed under Section 54C of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 20 Feb 2024
- **Citation:** TCN-2024-NCLT-02514
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kvir-towers-private-limited-0b6a78ad

## Summary

### Background

The application is filed under Section 54C of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Pre-Packaged Insolvency Resolution Process) Rules, 2021, seeking initiation of Pre-Packed Insolvency Resolution Process (PPIRP) under Chapter III-A of the Code with respect to KVIR Towers Private Limited. The Corporate Debtor is a company limited by Shares (Non-Government Co.) incorporated on 11.07.2013. The Corporate Debtor has given Corporate Guarantee for an amount of Rs. 170 crore. The principal borrower RG Residency Pvt. Ltd. for whom the Corporate Debtor has given guarantee is stated to be under a default of Rs. 255.40 crore which is owed to Prithvi Asset Reconstruction and Securitization Company Ltd. Amount of default is Rs.

…

## Facts

KVIR Towers Private Limited (Corporate Debtor) filed an application under Section 54C of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Pre-Packed Insolvency Resolution Process (PPIRP). The Corporate Debtor is a company limited by Shares (Non-Government Co.) incorporated on 11.07.2013. The Corporate Debtor has given a Corporate Guarantee for an amount of Rs. 170 crore to RG Residency Pvt. Ltd. The principal borrower RG Residency Pvt. Ltd. is under a default of Rs. 255.40 crore owed to Prithvi Asset Reconstruction and Securitization Company Ltd. As per the Loan Recall Notice dated 28.08.2023, the amount of default is Rs. 762.03 crore. The Corporate Debtor has produced the audited financial statement of the company for the FY 2021-2022, 2022-2023 along

…

## Issues and analysis

### Issue 1: Whether the application for Pre-Packed Insolvency Resolution Process of KVIR Towers Private Limited …

**Ratio:** Section 54C of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of a

…

**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had produced the required

…

**Interpretation:** Section 54C provides a framework for initiating PPIRP, emphasizing the need for

…

**Application:** The Adjudicating Authority applied Section 54C to the facts presented by KVIR

…

## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Respondents:** KVIR TOWERS…

## Timeline

- **2013-07-11 — Incorporation of…**: KVIR Towers Private Limited is incorporated as a company limited by Shares…
- **2023-08-28 — Loan Recall…**: Loan Recall Notice issued by Unrelated Financial Creditor i.e. Prithvi Asset…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54C — Application to initiate pre-packaged insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54c)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kvir-towers-private-limited-0b6a78ad