Mumbai: NCLT Upholds IndusInd Bank’s Rights In Precision Realty Insolvency Case, Orders ₹19.59 Crore Payout
June 02, 2026
The NCLT has ruled that dissenting secured creditor IndusInd Bank cannot be denied the liquidation value of its exclusive security interest in the insolvency proceedings of Precision Realty Developers. The tribunal ordered modification of the resolution plan and directed payment of at least ₹19.59 crore to the bank.
Mumbai, June 2: The National Company Law Tribunal (NCLT), in its recent order passed in the insolvency case of Precision Realty Developers Pvt Ltd, has held that a dissenting secured financial creditor cannot be deprived of the minimum liquidation value attached to its exclusive security interest.
The tribunal thus ruled in favour of IndusInd Bank. Thane-based Precision Realty Developers Pvt Ltd has entered the Corporate Insolvency Resolution Process (CIRP). The tribunal, in its order, directed that the bank be paid at least Rs 19.59 crore, representing the liquidation value of its secured asset.
Dispute arose during insolvency resolution process
The dispute arose during the CIRP of Precision Realty Developers Pvt Ltd after OCL Iron & Steel Ltd emerged as the successful resolution applicant.
The case dates back to financial assistance extended by IndusInd Bank in 2017 to Nice Texcot Trading & Agency Pvt Ltd. Following financial difficulties during the Covid-19 pandemic, the borrower’s loans were restructured in June 2021.
As security for the facilities, Precision Realty Developers executed a corporate guarantee and created an exclusive mortgage over its 6.20-acre land parcel in Burdwan district of West Bengal, along with the structures standing on the property.
The charge was duly registered with the Registrar of Companies, giving IndusInd Bank the status of a secured creditor.
Recovery proceedings and insolvency admission
After the borrower defaulted, IndusInd Bank classified the account as a non-performing asset and issued a demand notice in August 2022 seeking recovery of more than Rs 103.64 crore.
Recovery proceedings were initiated under the SARFAESI Act and the Recovery of Debts and Bankruptcy Act.
While those proceedings were pending, Phoenix ARC Private Limited filed a Section 7 insolvency petition against Precision Realty Developers.
The NCLT admitted the petition on October 20, 2023, commencing the CIRP and appointing Pradeep Kabra as Resolution Professional.
IndusInd Bank submitted a claim of Rs 117.95 crore. However, the Resolution Professional admitted only Rs 40.50 crore, corresponding to the estimated value of the mortgaged land and building.
Phoenix ARC’s claim of Rs 132.49 crore was admitted in full, resulting in Phoenix ARC holding a dominant 76.6 per cent voting share in the Committee of Creditors (CoC), while IndusInd Bank held 23.4 per cent.
Tribunal orders payment of liquidation value
The NCLT observed that the mortgaged Burdwan land constituted nearly the entire liquidation value of the corporate debtor.
It noted that if the company had gone into liquidation, IndusInd Bank would have been entitled under Section 52 of the Insolvency and Bankruptcy Code (IBC) to realise the value of its exclusive security interest.
Also Watch:
Holding that the approved distribution deprived IndusInd Bank of its minimum statutory entitlement, the tribunal directed that the resolution plan be modified to comply with the IBC and ordered that IndusInd Bank be paid at least Rs 19.59 crore, representing the liquidation value attributable to its sole and exclusive security interest over the Burdwan property.
The tribunal thus ruled in favour of IndusInd Bank. Thane-based Precision Realty Developers Pvt Ltd has entered the Corporate Insolvency Resolution Process (CIRP). The tribunal, in its order, directed that the bank be paid at least Rs 19.59 crore, representing the liquidation value of its secured asset.
Dispute arose during insolvency resolution process
The dispute arose during the CIRP of Precision Realty Developers Pvt Ltd after OCL Iron & Steel Ltd emerged as the successful resolution applicant.
The case dates back to financial assistance extended by IndusInd Bank in 2017 to Nice Texcot Trading & Agency Pvt Ltd. Following financial difficulties during the Covid-19 pandemic, the borrower’s loans were restructured in June 2021.
As security for the facilities, Precision Realty Developers executed a corporate guarantee and created an exclusive mortgage over its 6.20-acre land parcel in Burdwan district of West Bengal, along with the structures standing on the property.
The charge was duly registered with the Registrar of Companies, giving IndusInd Bank the status of a secured creditor.
Recovery proceedings and insolvency admission
After the borrower defaulted, IndusInd Bank classified the account as a non-performing asset and issued a demand notice in August 2022 seeking recovery of more than Rs 103.64 crore.
Recovery proceedings were initiated under the SARFAESI Act and the Recovery of Debts and Bankruptcy Act.
While those proceedings were pending, Phoenix ARC Private Limited filed a Section 7 insolvency petition against Precision Realty Developers.
The NCLT admitted the petition on October 20, 2023, commencing the CIRP and appointing Pradeep Kabra as Resolution Professional.
IndusInd Bank submitted a claim of Rs 117.95 crore. However, the Resolution Professional admitted only Rs 40.50 crore, corresponding to the estimated value of the mortgaged land and building.
Phoenix ARC’s claim of Rs 132.49 crore was admitted in full, resulting in Phoenix ARC holding a dominant 76.6 per cent voting share in the Committee of Creditors (CoC), while IndusInd Bank held 23.4 per cent.
Tribunal orders payment of liquidation value
The NCLT observed that the mortgaged Burdwan land constituted nearly the entire liquidation value of the corporate debtor.
It noted that if the company had gone into liquidation, IndusInd Bank would have been entitled under Section 52 of the Insolvency and Bankruptcy Code (IBC) to realise the value of its exclusive security interest.
Also Watch:
Holding that the approved distribution deprived IndusInd Bank of its minimum statutory entitlement, the tribunal directed that the resolution plan be modified to comply with the IBC and ordered that IndusInd Bank be paid at least Rs 19.59 crore, representing the liquidation value attributable to its sole and exclusive security interest over the Burdwan property.