# Mr. Gonugunta Murali, Liquidator, Butta Infrastructure Pvt Ltd vs. LIC Housing Finance Ltd

> NCLT judgment dated 2026-10-07. Citation: TCN-2026-NCLT-01249. M/s. Butta Infrastructure Private Limited (Corporate Debtor) was admitted into Corporate…

- **Court:** NCLT
- **Order date:** 7 Oct 2026
- **Citation:** TCN-2026-NCLT-01249
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/butta-infrastructure-private-limited-7tr0f

## Summary

### Background

M/s. Butta Infrastructure Private Limited (Corporate Debtor) was admitted into Corporate Insolvency Resolution Process (CIRP) on 01.03.2021, and subsequently into liquidation on 24.02.2022, with Mr. Gonugunta Murali appointed as Liquidator. LIC Housing Finance Ltd (Respondent), a secured financial creditor, had advanced a loan of Rs. 310 Crores to the Corporate Debtor, secured by the Banjara Hills Property and Madhapur Property. While LIC HFL relinquished its security interest in the Banjara Hills Property, it elected to realize its security interest over the Madhapur Property. Prior to the CIRP, LIC HFL initiated SARFAESI proceedings, which were stayed by the Hon'ble High Court of Telangana on 05.03.2020. This stay was eventually vacated on 14.11.2022.

## Facts

The Corporate Debtor, M/s. Butta Infrastructure Private Limited, was admitted into Corporate Insolvency Resolution Process (CIRP) on 01.03.2021.

Mr. Krishna Komaravolu was appointed as the Interim Resolution Professional and subsequently as the Resolution Professional.

The Corporate Debtor was admitted into liquidation on 24.02.2022, and Mr. Gonugunta Murali was appointed as the Liquidator.

The Corporate Debtor owned Banjara Hills Property and Madhapur Property, which were mortgaged in favour of LIC Housing Finance Ltd (Respondent).

LIC Housing Finance Ltd (Respondent) had advanced a loan facility of Rs. 310 Crores to the Corporate Debtor.

LIC Housing Finance Ltd relinquished its security interest in the Banjara Hills Property via email dated 17.05.2022.

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## Issues and analysis

### Issue 1: Whether the non-relinquished properties by the Respondent No.1 shall be deemed to have been …

**Ratio:** A secured creditor who elects to realize its security interest must do so within 180 days

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**Reasoning:** The Respondent (LIC HFL) elected to realize its security interest in the Madhapur

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**Interpretation:** Regulation 21A(2)(b) imposes a strict timeline for secured creditors to realize

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**Application:** In this case, the Respondent failed to realize its security interest in the

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## Parties

- **Judges:** SHRI. RAJEEV…; SHRI. SANJAY…
- **Appellants:** Gonugunta Murali,…; Gonugunta…
- **Respondents:** M/s.Butta…; LIC Housing…
- **Other parties:** Krishna Kom…
- **Advocates:** Sachin S…; M. Maharshi…

## Timeline

- **2019-11-18 — Demand Notice…**: LIC Housing Finance Ltd (Respondent) issued a demand notice under Section 13(2) of the…
- **2020-02-10 — Possession Noti…**: LIC Housing Finance Ltd (Respondent) issued a possession notice under Section 13(4) of…

## 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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