# In the matter of Ravi Cranes and Movers Limited

> NCLT judgment dated 2024-02-27. Citation: TCN-2024-NCLT-02380. The case involves an application (IA No.1178 of 2023) filed by the promoter and member of the…

- **Court:** NCLT
- **Order date:** 27 Feb 2024
- **Citation:** TCN-2024-NCLT-02380
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ravi-cranes-and-movers-limited-be24cd24

## Summary

### Background

The case involves an application (IA No.1178 of 2023) filed by the promoter and member of the suspended Board of M/s. Ravi Cranes and Movers Limited (Corporate Debtor) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking directions to the Resolution Professional (RP) to include a disputed property in the Information Memorandum (IM) and conduct a fresh valuation. The Corporate Insolvency Resolution Process (CIRP) had been initiated against the Corporate Debtor on 26.09.2022. The applicant contends that a property, which is still reflected in the Corporate Debtor's balance sheet and encumbrance certificate, was wrongly excluded from the IM by the RP. The respondent, Indian Overseas Bank, argues that the property was already sold in an e-auction

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## Facts

The Corporate Insolvency Resolution Process (CIRP) against M/s. Ravi Cranes and Movers Limited (Corporate Debtor) was initiated on 26.09.2022. The promoter and member of the suspended board filed an application (IA No.1178 of 2023) seeking to include a property in Gopanpally Village, Serilingampally Mandal, Ranga Reddy District, in the Information Memorandum (IM). This property was purchased by the Corporate Debtor and is reflected in its balance sheet from 2013-14 to 2021-22. Indian Overseas Bank (Respondent No.2) extended credit facilities to M/s.RCM Infrastructure Limited ('RCM'), with the Corporate Debtor acting as a guarantor. 'RCM' defaulted, and its account was classified as NPA on 30.01.2016. Respondent No.2 issued a demand notice on 12.01.2018 under the

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## Issues and analysis

### Issue 1: Whether the Resolution Professional was correct in not including the disputed property in the …

**Ratio:** The legal principle applied is that a sale is complete under the SARFAESI Act upon the

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**Reasoning:** The court reasoned that the sale of the disputed property was completed before the

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**Interpretation:** The interpretation of the law is that the issuance of a sale certificate under

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**Application:** The court applied this principle to the facts of the case, noting that the sale

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Mr.K.S.Ch…
- **Respondents:** Ravi Cranes and…; Ms.Mummaneni…

## Timeline

- **2016-01-30 — RCM Account Classified…**: The account of M/s.RCM Infrastructure Limited was classified as a Non-Performing Asset…
- **2018-01-12 — Demand Notice…**: Respondent No.2 issued a demand notice under Section 13(2) of the SARFAESI Act to 'RCM'…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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