Tribunal authorizes District Collector to investigate theft incidents, support Resolution Professional

The Tribunal allowed the Motion Application, directing the District Collector to investigate theft incidents, assist the Resolution Professional, and ensure prompt police action on FIRs related to stolen assets of the Corporate Debtor. Emphasizing State Machinery's duty to protect assets and take action against offenders, the Tribunal invoked its authority under Section 429 of the Companies Act, 2013 and regulation 30 of CIRP Regulations, 2016 to support the Resolution Professional in safeguarding the Corporate Debtor's interests.

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Issues:
1. Seeking directions for FIR against stolen goods and machinery.
2. Allegation of theft of assets of the Corporate Debtor.
3. Failure of police to take action on FIRs filed.
4. Power of the Tribunal to direct assistance to Resolution Professional.

Analysis:
1. The Tribunal received a Motion Application (MA) from the Resolution Professional requesting directions against the Inspector of Police to register an FIR and take action against the alleged offenders who stole goods and machinery of the Corporate Debtor. The Resolution Professional sought police support in protecting the factory premises and assets, as well as assistance in the recovery process of stolen items.

2. The CoC meeting recommended the Resolution Professional to file the MA after learning about the theft of machineries and assets of the Corporate Debtor. The Indian Bank officers discovered individuals dismantling and stealing machinery from the factory premises. The bank officers identified individuals involved and linked the theft to an Operational Creditor who had obtained an injunction order against the Corporate Debtor.

3. Despite multiple FIRs filed by the Village Administrative Officer and the Resolution Professional, the police had not taken any action. The Resolution Professional submitted copies of FIRs requesting police action against the culprits, but no response was received. The Tribunal noted the lack of police action on the reported theft incidents.

4. The Tribunal, after considering the factual and legal submissions, concluded that it had the authority to direct the Police/District Magistrate to assist the Resolution Professional as per the provisions of Section 429 of the Companies Act, 2013 read with regulation 30 of CIRP Regulations, 2016. It emphasized the obligation of the State Machinery to support the Resolution Professional in protecting the assets and taking action against those causing losses to the Corporate Debtor.

5. The Tribunal directed the District Collector of Kanchipuram to investigate the incidents at the factory premises, verify the Resolution Professional's report, and provide necessary assistance as mandated by the regulations. Additionally, the Respondent was instructed to promptly act on the FIRs related to theft of the Corporate Debtor's assets. The Tribunal allowed the Motion Application, emphasizing the importance of State Machinery's active involvement in assisting the Resolution Professional to preserve the asset value and protect the Corporate Debtor's interests.

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