# In the matter of RG Residency Private Limited

> NCLT judgment dated 2024-02-20. Citation: TCN-2024-NCLT-02519. 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-02519
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rg-residency-private-limited-0ea28799

## 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 RG Residency Private Limited. The corporate debtor is a company limited by shares, incorporated on 14.01.2010, and is engaged in the real estate business. The corporate debtor is under a default of Rs. 322.24 crore owed to three unrelated financial creditors. A base resolution plan was submitted by the applicant.

## Facts

RG Residency Private Limited filed an application under Section 54C of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Pre-Packaged Insolvency Resolution Process (PPIRP). The company, incorporated on 14.01.2010, is engaged in the real estate business. The corporate debtor is under a default of Rs. 322.24 crore owed to three unrelated financial creditors: Prithvi Asset Reconstruction and Securitization Company Ltd., Sanghi Steel Udyog Pvt. Ltd, and Mountview Merchandise Pvt. Ltd. However, as per the Loan Recall Notice dated 28.08.2023 issued by one of the Unrelated Financial Creditor i.e. Prithvi Asset Reconstruction and Securitization Company Ltd., amount of default is Rs. 820.88 crore. The application included a base resolution plan. The corporate

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## Issues and analysis

### Issue 1: Whether the application for Pre-Packaged Insolvency Resolution Process of RG Residency Private …

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

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**Reasoning:** The court perused the proceedings and found that the Corporate Debtor had produced the

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**Interpretation:** Section 54C provides the criteria for admitting an application for PPIRP,

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**Application:** The court applied Section 54C to the facts of the case, determining that the

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Respondents:** RG RESIDENCY…

## Timeline

- **2010-01-14 — Incorporati…**: RG Residency Private…
- **2023-08-28 — Loan Recall…**: Loan Recall Notice issued by Prithvi Asset Reconstruction and Securitization Company…

## 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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