# In the matter of Tirumala Hills Asphalt Private Limited

> NCLT judgment dated 2025-04-09. Citation: TCN-2025-NCLT-01004. The Resolution Professional (RP) filed an application seeking to declare certain transactions…

- **Court:** NCLT
- **Order date:** 9 Apr 2025
- **Citation:** TCN-2025-NCLT-01004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/tirumala-hills-asphalt-private-limited-7f895604

## Summary

### Background

The Resolution Professional (RP) filed an application seeking to declare certain transactions as undervalued under Section 45 of the IBC, specifically the sale of factory assets by the Corporate Debtor (CD) to Respondent No. 3 (R3). The RP also sought recovery of an amount outstanding in the name of R3 in the books of the CD.

## Facts

The Resolution Professional (RP) sought to make out a case of 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) 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:** Section 45 of the IBC deals

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**Reasoning:** The Tribunal considered the book value and depreciated value of the assets, the sale

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**Interpretation:** An undervalued transaction occurs when assets are sold for significantly less

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

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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 CIRP commencement date…
- **2022-07-01 — Outstanding…**: The outstanding balance as on 1…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 49 — Transactions defrauding creditors](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-49)

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