TaxTMI 
TaxTMI 
2018 (6) TMI 842
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....tions to Ex-Directors/Management for extending full cooperation and to provide necessary information to the resolution professional. The corporate insolvency resolution process was triggered in this case on 22.09.2017 (Annexure A-1). In the first meeting of the Committee of Creditors (COC) held on 22.12.2017 (Annexure A-3), specific directions were issued to the Ex-management-Directors namely Mr.Mandeep Singla, Mr.Keshav Kumar Bansal and Mr.Raj Kumar. According to the directions, exact particulars of the land, the period when the crop was uprooted premature, the subsequent termination of the lease agreement by the corporate debtor and details of plantation of crops etc. were sought. However, no exact information as required was provided. Th....
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....eferring to the Code of Conduct. 4. On merits, the defence put up is that the whole record has been provided to the PNB-financial creditor at the time of sanctioning of loan and disbursement of the term loan. The resolution professional, therefore, is free to ask for the same from the PNB. It is suggested that the land is already held by the Bank. 5. With regard to harvesting and pre-mature uprooting of the crop, the relevant information is stated to have been supplied to the financial creditor and a reference has been made to communications which the resolution professional is alleged to be withholding with mala fide intention. It is stated that letters dated 17.09.2015, 03.10.2015 and 06.11.2015 (Annexure R-2 to R-4 of diary No.1408....
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....e required by him in managing the affairs of the corporate debtor. Section 19 (2) of the Code then empowers the resolution professional to file appropriate application before the Adjudicating Authority-NCLT to seek necessary directions and the Adjudicating Authority must issue direction to such defaulting personnel of ex-management. Section 19 of the Code is set out below for a ready reference:- "19. (1) The personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor shall extend all assistance and cooperation to the interim resolution professional as may be required by him in managing the affairs of the corporate debtor. (2) Where any personnel of the corpora....
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....e resolution professional. 9. The Ex-Directors No.1 to 3 instead of cooperating with the resolution professional, have been engaging the COC/resolution professional in an irrelevant and unholy dialogue. In order to avoid furnishing of information, the provisions of Section 18 (1) (a) of the Code have been relied upon to argue that the resolution professional cannot seek information for any transaction for a period beyond two years preceding the date of triggering the CIRP process. We are afraid that this is not the intent and requirement of Section 18 (1) of the Code. A careful perusal of Section 18 (1) (a) would show that as a part of his duty, the interim resolution professional is to collect all information relating to assets, finance....