Authority: National Company Law Tribunal, Hyderabad Bench – 1

Order Date: 15 June 2026

Case Overview

This application (IA (IBC) 1971/2025) was filed by Preca Structures Private Limited, a Special Purpose Vehicle (SPV) incorporated pursuant to the approved Resolution Plan of Preca Solutions India Private Limited, the Successful Resolution Applicant (SRA) for Neueon Towers Limited (Corporate Debtor). The Corporate Insolvency Resolution Process (CIRP) for Neueon Towers was initiated on 03 June 2019, and the Resolution Plan was approved by the NCLT on 23 October 2024.

The application sought consequential directions regarding the treatment of unclaimed amounts from the CIRP and Resolution Plan implementation, which are the subject of a separate application, IA (IBC) 1566/2025. These amounts consist of an unclaimed security deposit of Rs. 1,00,00,000 (One Crore) furnished by Prospective Resolution Applicants during the CIRP and an unclaimed amount of Rs. 2,27,425 earmarked for certain creditors under the approved Resolution Plan.

The Applicant, Preca Structures, requested that instead of distributing these amounts to the financial creditors of the Corporate Debtor (as proposed in IA 1566/2025), the funds be transferred to and retained by the Applicant or the Corporate Debtor. It offered an undertaking to disburse the amounts to any entitled claimant who subsequently approaches for payment within a period prescribed by the Tribunal. The Applicant argued this would ensure better administration and avoid future procedural complications with creditors.

The Respondent, the Monitoring Committee of the Corporate Debtor chaired by Dr. Madurai Sundaram Sankar, countered that the application was misconceived and not maintainable. It contended that the Applicant had no locus standi to seek directions for funds belonging to third parties and that transferring the money to the Applicant could jeopardize the interests of rightful claimants. The Respondent argued the funds should be retained separately for security.

The Tribunal noted that the Applicant had previously filed an intervention petition (Inv. Petn. (IBC) No.18 of 2025) in the connected matter, IA 1566/2025, which was dismissed on 04 March 2026. In that order, the Tribunal had already observed that the Applicant had "no right to say how the amounts lying with the Monitoring Committee Chairman are to be disbursed."

Final Outcome

The Tribunal dismissed IA (IBC) No.1971 of 2025. It upheld the Respondent's contention on maintainability, ruling that the Applicant had failed to establish any independent legal right, entitlement, or locus standi over the unclaimed amounts, which belong to third parties. The question of how to deal with the unclaimed funds remains pending for adjudication in the connected application, IA (IBC) No.1566 of 2025.

Topics: Insolvency Resolution, Unclaimed Funds, Locus Standi