Authority: National Company Law Tribunal, Hyderabad Bench - 1 (Sh. Rajeev Bhardwaj, Member Judicial and Sh. Sanjay Puri, Member Technical)

Order Date: 15 June 2026

Case Overview

The National Company Law Tribunal (NCLT) Hyderabad Bench heard two interconnected applications concerning the treatment of unclaimed amounts totaling ₹1,02,27,425 from the Corporate Insolvency Resolution Process (CIRP) of Neueon Towers Limited.

IA (IBC) 1971/2025 was filed by Preca Structures Private Limited, a Special Purpose Vehicle incorporated pursuant to the approved Resolution Plan of Preca Solutions India Private Limited (Successful Resolution Applicant). The applicant sought directions to retain unclaimed amounts (₹1,00,00,000 in security deposits from Prospective Resolution Applicants and ₹2,27,425 earmarked for operational creditors) instead of distributing them to financial creditors, subject to an undertaking to disburse to rightful claimants when they approach.

The Monitoring Committee (respondent) opposed the application, arguing that Preca Structures had no locus standi to seek control over third-party funds and that retention by the SPV could jeopardize claimant interests. The Tribunal noted that the applicant had previously filed an intervention petition (Inv. Petn. (IBC) No.18 of 2025) which was dismissed on 04 March 2026, where the Authority had already held that the applicant had "no right to say how the amounts lying with the Monitoring Committee Chairman are to be disbursed."

IA (IBC) 1566/2025 was filed by Dr. Madurai Sundaram Sankar, Chairman of the Monitoring Committee and former Resolution Professional, seeking directions regarding the same unclaimed amounts. The application detailed efforts to contact the rightful claimants through emails, foreign registered posts, and speed posts, all of which either bounced back, returned unserved, or received no response. The applicant proposed distributing the amounts to financial creditors subject to refund undertakings.

The unclaimed amounts comprised:

  • ₹50,00,000 security deposit from Invent Assets Securitization & Reconstruction Private Limited
  • ₹50,00,000 security deposit from Agritrade Commodities Pte. Limited
  • ₹2,23,806 earmarked for Nippon Alloy Limited (operational creditor)
  • ₹1,476 earmarked for Raideep & Associates (operational creditor)
  • ₹2,143 earmarked for Brilliant Intelligence Security Forces (operational creditor)

The CIRP of Neueon Towers was initiated on 03 June 2019 on application by IDBI Bank Limited. After initial rejection of a resolution plan and subsequent NCLAT remand, the resolution plan of Preca Solutions India Private Limited was approved by the CoC with 95.89% voting share and approved by NCLT on 23 October 2024.

Final Outcome

The Tribunal dismissed IA (IBC) 1971/2025 filed by Preca Structures Private Limited, upholding the Monitoring Committee's objection regarding lack of locus standi. The bench allowed IA (IBC) 1566/2025 filed by the Monitoring Committee but modified the relief sought.

Instead of permitting distribution to financial creditors, the Tribunal directed deposit of all unclaimed amounts totaling ₹1,02,27,425 into the Corporate Liquidation Account maintained under Regulation 46 of the IBBI (Liquidation Process) Regulations, 2016 within four weeks. The specific amounts to be deposited are:

  • ₹50,00,000 pertaining to Invent Assets Securitization & Reconstruction Private Limited
  • ₹50,00,000 pertaining to Agritrade Commodities Pte. Limited
  • ₹2,23,806 pertaining to Nippon Alloy Limited
  • ₹1,476 pertaining to Raideep & Associates
  • ₹2,143 pertaining to Brilliant Intelligence Security Forces

The Monitoring Committee Chairman must follow the procedure prescribed under Regulation 46 while making the deposit and will stand discharged from further responsibility upon compliance. This mechanism ensures the amounts remain protected under statutory framework and available to rightful claimants whenever they approach.

Topics: Insolvency Proceedings, Unclaimed Funds, Corporate Liquidation Account