TaxTMI 
TaxTMI 
2019 (3) TMI 1338
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....med fit and proper in the circumstances of the case in the interest of the justice. 2. The factual matrix of the case is that an application under Section 9 of the Insolvency and Bankruptcy Code 2016 (in short IBC,2016) read with Rule 6 of the Insolvency and Bankruptcy Code (Application to Adjudicating Authority) Rules, 2016 was filed by the Operational Creditor viz. Mrs. T. Preethi against M/S. Thiripura Chits Private Limited (the "Corporate Debtor") which was admitted by this adjudicating authority vide its order dated 17.09.2018 and the Applicant was appointed as Interim Resolution Professional (IRP). 3. However, when the Applicant visited the registered office of the Corporate Debtor in order to take control of the no person was available in the premises. It is learnt from the various sources that the Managing Director and others Directors of the Corporate Debtor were arrested by the Economics Offences Wing-CID, Chennai, who have accused of cheating numerous depositors. The EOW CID registered the case against them under IPC Sections 406 (Criminal Breach of Trust) and 420 (Cheating) and Section 5 of the Tamil Nadu Protection of Interest of Depositors Act (TNPID Act). 4. The A....
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....erous deposit holders were affected due to fraud, cheating, misrepresentation and criminal breach of trust committed by the management of the Corporate Debtor. 8. The Respondent has filed his report dated 25.02.2019 stating therein that a case in Economic Offences Wing-Il Headquarters Cr.N0.12/2017 u/s 406, 420, r/w 120(B) IPC & 5 of TNPID Act was registered on 17.11.2017 based on the complaint of one Tmt. Gayathri W/o Nageswaran, No.2, Mariyamman Koil Street, Kodambakkarn, Chennai-24 against "Thiripura Chits Private Limited' and its directors for non-payment of her Principle amount of Rs. 19,60,300/- and also submitted the chit Deposit passbook for open chit deposit scheme in the name of "Thiripura Chits Private Limited' and the case is under investigation. 9. The Respondent has further stated in his report that Mr. P. V. Krishana Prasath (Accused 2), Managing Director/ shareholder, Mrs. K. Sumana (Accused 3), director/ shareholder along with another directors namely Tr. M. E. Venu (Accused 4), Tr. K. Vasu (Accused 5), Tr.M.G.Karumbaiah (Accused 6), Tr.N. Balakrishnan (Accused7), and Tr. Jayapraksh Basavaraj (Accused 8) were running a company and collected deposits in th....
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....5,000 borrowers to the company in all over India. During the investigation a search was conducted on 01.02.2019 at No. B5/09, Elegant Villa, Olympia Panache, Navallur, OMR Road, Kancheepuram Dist- 1()3 and 33 boxes containing particulars of chit borrowers who had failed to repay the borrowed amount were seized and the document are being scrutinized. 13. It is also submitted by the Respondent that 11 cases were registered by the District EOW-II offices against this company branch offices and involved staff. As many as 3768 depositors in the Districts of Tamil Nadu have given their complaints for the total defaulted amount of 49,57,19,961/- in respective jurisdiction EOW-II. 14. On perusal of the pleadings the legal issue involved is framed as follows: Whether the proceedings pending under the Tamil Nadu Protection of Interest of Depositors Act, 1997 (TNPID Act) can be taken over by the Resolution Professional under the Provisions of the Insolvency and Bankruptcy code, 2016? The above issue seems to have been settled by the catena of judgements passed by the Hon ble Supreme Court. The Hon ble Supreme Court in Innovative Industries limited v/ s. ICICI Bank and Anr., has refereed ....
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....des the provisions of TNPID Act. This view is fortified by the proposition settled by the Hon ble High Court of Bombay in the matter of M/S. Aryarup Tourism Club Resorts Private Limited (in Liquidation), in Company Petition No. 278 of 2014, wherein it has been held that the powers of the competent authority appointed under the Maharashtra Protection of Interests of Depositors (in Financial Establishments) Act, 1999 (for short MPID Act) and the MPID Court does not supersede or prevail upon the powers of the Official liquidator or of the Company Court under the provision of the Companies Act. Therefore, in the light of the provisions of the IBC, 2016 the proceedings initiated under TNPID Act can legally be taken over by the Resolution Professional in relation to the Corporate Debtor viz. Thiripura Chits Private Limited. Accordingly, the issue framed herein above is answered in affirmative. 17. Besides the above, the reply filed by the Respondent viz. Deputy Superintendent of Police, Economic Offence wing-Il, reveals that chits security deposit amount of Rs. 2.71 cores in Chennai with the District Registrar of Chits were identified, and the same was frozen and the proposal has alread....