Authority: National Company Law Tribunal Division Bench, Court – II Chennai
Order Date: 16 June 2026
Case Overview
The hearing concerned Application No. IA(I.B.C)/503(CHE)2026 in Petition No. CP(IB)/577(CHE)2020, filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The applicant was Mr. Mahalingam Suresh Kumar, the Resolution Professional (RP) of M/s. Real Value Promoters Private Limited, which is undergoing Corporate Insolvency Resolution Process (CIRP). The respondents included the Tambaram City Municipal Corporation and others.
The principal issue was the alleged violation of the Tribunal's previous order dated 05.05.2026, which had directed development authorities not to carry out any activity on the property of the corporate debtor. The applicant reported that certain construction activity had been carried out by parties in direct violation of this order. The Tribunal noted the serious nature of this non-compliance by development authorities, specifically naming the Tambaram City Municipal Corporation and the Chennai Metropolitan Development Authority (CMDA). Neither authority was represented at the hearing.
Final Outcome
The Tribunal directed the Commissioner of Tambaram City Municipal Corporation along with the Tahsildar of Pallavaram, and the Managing Director of CMDA along with the Member Secretary of CMDA to appear in person during the next hearing scheduled for 09 July 2026. The order explicitly stated that failure to appear would result in the issuance of bailable warrants to enforce their attendance. The registry was directed to serve copies of the order, and the applicant was also directed to serve copies to counsel for Tangedco (TNEB). Additionally, Tangedco (referred to as TNPDCL in the order) was directed not to provide any electricity connection to any third party on the property, as it belongs to the estate of the corporate debtor.
Topics: NCLT Proceedings, Insolvency Process, Municipal Compliance