# In the matter of KVIR Towers Pvt. Ltd.

> NCLT judgment dated 2024-02-20. Citation: TCN-2024-NCLT-02522. 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-02522
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kvir-towers-pvt-ltd-142d90c1

## 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, incorporated on 11.07.2013, engaged in Real Estate activities. It has given a corporate guarantee for Rs. 170 crore to RG Residency Pvt. Ltd., which is under default of Rs. 255.40 crore 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.

## 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, incorporated on 11.07.2013, and engaged in Real Estate activities. It has given a corporate guarantee for Rs. 170 crore to RG Residency Pvt. Ltd., which is under default of Rs. 255.40 crore 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 with provisional balance sheet as on 30.11.2023. The

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## 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, provides for the initiation of

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**Reasoning:** The Adjudicating Authority perused the proceedings and found that the Corporate Debtor

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**Interpretation:** Section 54C allows for the admission of an application for PPIRP if the

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**Application:** The Adjudicating Authority found that KVIR Towers Private Limited had met the

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## Parties

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

## Timeline

- **2013-07-11 — Incorporation of…**: KVIR Towers Private Limited incorporated as a company limited by Shares (Non-Government…
- **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)

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