# In the matter of Ria Constructions Limited IA No. 492, 561 & 563-2021 & IA 1371-2022, CA No. 397-2019 in CP (IB) No. 198-Chd-Chd-2018

> NCLT judgment dated 2023-05-29. Citation: TCN-2023-NCLT-03144. The case involves multiple applications (IAs 492/2021, 561/2021, 563/2021, 397/2019, and…

- **Court:** NCLT
- **Order date:** 29 May 2023
- **Citation:** TCN-2023-NCLT-03144
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ria-constructions-limited-ia-no-492-561-563-2021-ia-1371-2022-ca-no-397-2019-in-617ca5a7

## Summary

### Background

The case involves multiple applications (IAs 492/2021, 561/2021, 563/2021, 397/2019, and 1371/2022) filed in relation to the Corporate Insolvency Resolution Process (CIRP) of Ria Constructions Ltd. under the Insolvency and Bankruptcy Code, 2016. The Resolution Professional (RP) filed applications seeking recovery of outstanding amounts from various respondents. IA 561/2021 pertains to recovery of Rs. 9,72,973 from GGDSD College Society. IA 563/2021 seeks recovery of Rs. 33,20,676 from respondents. IA 492/2021 aims to recover Rs. 16,91,193.83 from respondents. CA 397/2019 concerns recovery of Rs. 6,44,71,000. IA 1371/2022 was filed by a Resolution Applicant against the RP and Punjab National Bank, challenging the decision for liquidation.

## Facts

Ria Constructions Ltd. underwent CIRP, initiated after an application under Section 7 of the Insolvency and Bankruptcy Code was admitted on 2018-12-11. Desh Deepak was appointed as the Resolution Professional. Several applications were filed by the RP seeking recovery of outstanding amounts from various parties. Punjab National Bank (PNB) is the financial creditor. GGDSD College Society allegedly owes Rs. 9,72,973 for construction work. Other respondents allegedly owe Rs. 33,20,676 and Rs. 16,91,193.83 respectively. An arbitration award of Rs. 3,67,72,000 plus interest was passed in favor of the corporate debtor against a respondent. The RP found that the Corporate Debtor is owed Rs. 19,25,46,787.70 and Rs. 58,68,010 by M/s Lafarge. The CoC approved a proposal for

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## Issues and analysis

### Issue 1: Whether the respondents in IA Nos. 492/2021, 561/2021, 563/2021 and 397/2019 should be directed to …

**Ratio:** Section 25 of the Insolvency and Bankruptcy Code, 2016, mandates the resolution

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**Reasoning:** The court noted that the amounts claimed by the RP were reflected in the books of

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**Interpretation:** The court interpreted Section 25 to mean that the RP has a duty to recover

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**Application:** The court applied the ratio to the facts by directing the respondents to pay

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Punjab National…
- **Respondents:** Ria Constructions…

## Timeline

- **2018-12-11 — Admission of Application…**: Application under Section 7 of the…
- **2019-01-10 — CoC Meet…**: Meeting of the Committee of Creditors (CoC)…

## 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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