# In the matter of Neueon Towers Ltd.

> NCLT judgment dated 2024-02-27. Citation: TCN-2024-NCLT-02384. M/s Preca Solutions India Private Limited filed an application to set aside the decision of the…

- **Court:** NCLT
- **Order date:** 27 Feb 2024
- **Citation:** TCN-2024-NCLT-02384
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/neueon-towers-ltd-ba3db8e5

## Summary

### Background

M/s Preca Solutions India Private Limited filed an application to set aside the decision of the Resolution Professional, who declared the applicant ineligible under section 29A of the Code. The applicant argues ineligibility due to a pending application under section 9, CP(IB) No 08/2023, filed by Binjusaria Ispat Private Limited against Preca Solutions India Private Limited, pending in NCLT Hyderabad. The applicant claims to have paid the full principal amount on 17.01.2024, awaiting the Tribunal's decision.

## Facts

M/s Preca Solutions India Private Limited filed an application to challenge the Resolution Professional's decision to declare them ineligible under section 29A of the Insolvency and Bankruptcy Code (IBC). The basis for the ineligibility was the existence of a pending application against Preca Solutions India Private Limited under section 9 of the IBC, filed by Binjusaria Ispat Private Limited (CP(IB) No 08/2023). The applicant, Preca Solutions India Private Limited, claimed to have paid the full principal amount related to the said application on 17.01.2024, and the Tribunal's decision was awaited. The liquidator's decision to declare the applicant ineligible was based on legal advice. The court heard arguments from both sides before pronouncing its order.

## Issues and analysis

### Issue 1: Whether the applicant, M/s Preca Solutions India Private Limited, should be considered ineligible …

**Ratio:** Section 29A of the IBC outlines the criteria for ineligibility to submit a resolution

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**Reasoning:** The court considered the liquidator's decision, which was based on legal advice, and the

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**Interpretation:** Section 29A is interpreted to prevent individuals or entities with unresolved

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**Application:** In this case, the existence of a pending application under section 9 initially

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** M/s Preca…
- **Respondents:** Neueon Towe…

## Timeline

- **2024-01-17 — Payment of Principal…**: The applicant, Preca Solutions India Private Limited, claims to have paid the full…
- **2024-02-27 — Hearing…**: Hearing held on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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