# In the matter of RRB Realtors Private Limited

> NCLT judgment dated 2024-08-28. Citation: TCN-2024-NCLT-00740. The case involves an application filed by Pratiti Trading Private Limited (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 28 Aug 2024
- **Citation:** TCN-2024-NCLT-00740
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rrb-realtors-private-limited-b937a74b

## Summary

### Background

The case involves an application filed by Pratiti Trading Private Limited (Financial Creditor) to restore a Main Application (CP (IB) No.305/MB/2020) that was dismissed for default. The Main Application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against RRB Realtors Private Limited (Corporate Debtor) for defaulting on a debt of Rs.3,99,20,000/-. The Main Application was initially pending before Bench-II and was later transferred. The Financial Creditor's counsel relinquished engagement, leading to the dismissal for default on 11.01.2024.

## Facts

Pratiti Trading Private Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against RRB Realtors Private Limited, the Corporate Debtor, due to a default of Rs.3,99,20,000/-. The Main Application was dismissed for default because the Financial Creditor's counsel had relinquished engagement on 04.01.2024, and the Financial Creditor was unrepresented on 11.01.2024. The Financial Creditor then filed a restoration application, arguing that the absence was not intentional as they were in the process of engaging new counsel. The Corporate Debtor, though represented, objected to the restoration but conceded to the Bench's discretion. The restoration

…

## Issues and analysis

### Issue 1: Whether the Restoration Application No.30/2024 in CP (IB) No. 305/MB/2020 should be allowed and the …

**Ratio:** Rule 48 of the NCLT Rules allows for restoration of applications dismissed for default if

…

**Reasoning:** The court reasoned that the Financial Creditor had sufficient cause for not being

…

**Interpretation:** The court interpreted Rule 48 of the NCLT Rules to allow for the restoration of

…

**Application:** The court applied the ratio to the facts of the case, considering the

…

## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Pratiti Trading…
- **Respondents:** RRB REALTORS…

## Timeline

- **2020-01-04 — Main Applicati…**: The Main Application (CP (IB) No.305/MB/2020) was filed by Pratiti Trading Private…
- **2023-08-30 — First He…**: The Main Application came up for hearing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rrb-realtors-private-limited-b937a74b