Respondents in Default for Non-Cooperation during CIRP

The Tribunal found the Respondents in default for non-cooperation during the Corporate Insolvency Resolution Process (CIRP). Despite claims of compliance, the Respondents failed to provide essential information and assistance to the Resolution Professional (RP). The Tribunal directed the Respondents to fully cooperate with the RP within two weeks, emphasizing the importance of providing accurate financials, debtor details, ECGC and DGFT claims information, machinery reconciliation, and statutory compliance to facilitate the CIRP process.

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Issues Involved:
1. Non-cooperation by the Respondents in providing necessary information and assistance to the Resolution Professional (RP) during the Corporate Insolvency Resolution Process (CIRP).
2. Specific details required by the RP for completing financials, identifying debtors, and filing claims with ECGC and DGFT.
3. Identification and reconciliation of machinery and compliance with statutory requirements.

Issue-wise Detailed Analysis:

1. Non-cooperation by the Respondents:
The Resolution Professional (RP) filed an application under Section 19(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the Respondents to provide necessary assistance and information. The RP stated that despite repeated requests, the Respondents failed to provide crucial documents and information essential for the CIRP. The Respondents argued that they had already handed over all documents to the Interim Resolution Professional (IRP) and that no further assistance was required. However, the Tribunal noted that the Respondents were unwilling to visit the premises to provide further assistance and had only sent some documents via email. The Tribunal emphasized the need for full cooperation from the ex-directors and managerial persons to facilitate the RP in managing the affairs of the Corporate Debtor.

2. Specific details required by the RP:
The RP sought various specific details from the Respondents, including:
- Financial information for the period from 01.04.2019 to 31.03.2020.
- Accurate details of debtors against whom the Corporate Debtor advanced money and supplied goods.
- Information relating to ECGC and DGFT claims.
- Assistance in identifying and reconciling machinery with invoices.
- Compliance with statutory requirements.

The Respondents contended that the financial statements for 2018-19 had already been submitted and that there were no significant operations during 2019-20 and 2020-21. They also claimed that details of debtors had been provided and that the ECGC and DGFT claims had already been filed. However, the Tribunal found that the information provided was incomplete and that the Respondents had not fully complied with their obligations under Section 19 of the IBC Code.

3. Identification and reconciliation of machinery and compliance with statutory requirements:
The RP faced difficulties in updating details of machinery with the SEZ authorities due to a lack of information from the Respondents. The Tribunal noted that the Respondents had not provided adequate assistance in identifying the machinery or reconciling it with invoices. Additionally, the RP required assistance in complying with statutory requirements, which the Respondents failed to provide.

Conclusion:
The Tribunal concluded that there was a default on the part of the suspended Directors in complying with the provisions of Section 19 of the IBC Code. The Tribunal directed the Respondents to assist the RP and provide the necessary details within two weeks from the date of receipt of the Order, including:
- All required information to assist the RP in completing and signing the financials for the period from 01.04.2019 to 31.03.2020.
- Accurate details of debtors against whom the Corporate Debtor advanced money and supplied goods.
- All required information relating to ECGC and DGFT claims.
- Assistance in identifying and reconciling machinery with invoices.
- Assistance in complying with all statutory requirements.

The Tribunal's order emphasized the importance of cooperation from the ex-directors and managerial persons to ensure the successful completion of the CIRP.

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