# In the matter of Tirumala Hills Asphalt Private Limited

> NCLT judgment dated 2025-04-09. Citation: TCN-2025-NCLT-01006. The Resolution Professional (RP) filed an application seeking to identify undervalued…

- **Court:** NCLT
- **Order date:** 9 Apr 2025
- **Citation:** TCN-2025-NCLT-01006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/tirumala-hills-asphalt-private-limited-57eb2688

## Summary

### Background

The Resolution Professional (RP) filed an application seeking to identify undervalued transactions amounting to Rs 97,74,548 under Section 45 of the IBC, related to the sale of factory assets by the Corporate Debtor (CD) to Respondent No. 3 (R3). The RP also sought recovery of Rs 59,14,653 outstanding in the name of R3 in the CD's books.

## Facts

The Resolution Professional (RP) sought to identify undervalued transactions amounting to Rs 97,74,548 under Section 45 of the IBC.

The undervalued transaction arose from the sale of factory building and plant and machinery (factory assets) belonging to the Corporate Debtor (CD) to Respondent No. 3 (R3).

The sale is alleged to have been made at a price significantly below the book value of the assets, as reduced by depreciation.

The RP also sought recovery of Rs 59,14,653, being the amount outstanding in the name of R3 in the books of the Corporate Debtor.

The Respondents remained unresponsive, despite valid service, and thus were rendered ex-parte.

The RP relied upon an unregistered ‘Agreement of Sale’ and the ledger accounts maintained by the CD.

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## Issues and analysis

### Issue 1: Whether the sale of factory assets constitutes an undervalued transaction under Section 45 of the …

**Ratio:** If the physical possession of the factory assets was indeed handed over to R3 for a

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**Reasoning:** The court considered the difference between the depreciated value and the sale price to

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**Interpretation:** Section 45 of the IBC addresses undervalued transactions, and the court

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**Application:** The court applied Section 45 based on the evidence presented by the RP

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** GP Petroleu…; Adinarayana Babji…
- **Respondents:** Tirumala Hills…; Kayagurala…; +2 more

## Timeline

- **2023-06-14 — CIRP Commencem…**: The Corporate Insolvency Resolution…
- **2022-07-01 — Outstanding…**: The outstanding balance as on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 45 — Avoidance of undervalued transactions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-45)

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