# In the matter of Butta Infrastructure Limited

> NCLT judgment dated 2026-03-12. Citation: TCN-2026-NCLT-00276. Meridian Educational Society filed an application challenging the decision of the Liquidator of…

- **Court:** NCLT
- **Order date:** 12 Mar 2026
- **Citation:** TCN-2026-NCLT-00276
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/butta-infrastructure-limited-ef712ea6

## Summary

### Background

Meridian Educational Society filed an application challenging the decision of the Liquidator of Butta Infrastructure Private Limited, declaring the applicant ineligible under Section 29A of the Insolvency and Bankruptcy Code, 2016 to participate in an auction.

## Facts

LIC Housing Finance Limited initiated CIRP against Butta Infrastructure Private Limited under Section 7 of IBC.

The applicant, Meridian Educational Society, was declared ineligible to participate in the auction under Section 29A of IBC.

The Liquidator issued an auction notice dated 05.06.2025 for the land and building of the Corporate Debtor.

The Applicant remitted the stipulated EMD on 25.06.2025 and submitted its Expression of Interest (EOI).

The Respondent alleged that the Applicant was ineligible under Section 29A of the Code due to the directors/promoters of the Corporate Debtor exercising significant influence over the Applicant.

The MSME certificate of the Corporate Debtor was obtained on 20.11.2021 after commencement of CIRP.

…

## Issues and analysis

### Issue 1: Whether the Applicant is a Related …

**Ratio:** The Adjudicating Authority held that the Applicant Society falls within the ambit of a

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**Reasoning:** The sustained managerial, financial, and operational nexus between the entities attracts

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**Interpretation:** The determination of related-party status cannot be confined merely to the

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**Application:** The promoters of the Corporate Debtor, who are themselves ineligible under

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Meridian Education…
- **Respondents:** Butta Infrastructu…; Butta Infrastructu…; +1 more
- **Other parties:** Siva Neelakanta…; Butta Nag…; +3 more
- **Advocates:** Sarvani De…; Y. Suryana…; +2 more

## Timeline

- **2021-03-01 — CIRP Admi…**: Corporate Debtor was admitted into CIRP pursuant to an application filed by LIC Housing…
- **2022-02-24 — Liquidation…**: This Authority directed liquidation of the Corporate Debtor and appointed the present…

## 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)

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