TaxTMI 
TaxTMI 
2021 (3) TMI 95
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....has taken on record the First Information Report (bearing FIR Number - RC-DAI-2020-A-0001) registered on 11th January, 2020 with Central Bureau of Investigation (CBI), Anti-Corruption Bureau (ACB), New Delhi; the Order of Special Judge (PC Act), CBI-13, Rouse Avenue District Court, New Delhi dated 14th January, 2020 whereby the Court remanded Mr. Mohan to judicial custody until 28th January, 2020; and the SCN issued to Mr. Mohan on 15th January, 2020 by his IPA. 1.2 The IBBI on 16th January, 2020 had issued the SCN to Mr. Arun Mohan, based on examination of available documentary evidence in respect of his role as interim resolution professional (IRP)/resolution professional (RP) in the corporate insolvency resolution process (CIRP) of FR Tech Innovations (P.) Ltd. (CD). The SCN alleged contraventions of provisions of section 208(2)(a) of the Insolvency and Bankruptcy Code, 2016 (Code), Regulation 7(2)(a), (b), (f), (h) and (i) of the IBBI (Insolvency Professionals) Regulations, 2016 (IP Regulations) and clauses 1,2,3,5,9,12,14,17,24 and 28 of the Code of Conduct under regulation 7(2) thereof. Mr. Arun Mohan replied to the SCN vide letter dated 6th February 2020 and also submitte....
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....R and order of the Special Judge (PC Act), CBI, it was observed by IBBI that Mr. Mohan has apparently breached the maxims of the Code of Conduct stipulated vide IP Regulations. The presence of aforesaid FIR/remand for judicial custody for the alleged offences involving demand of bribe, raises serious questions regarding Mr. Mohan being "fit and proper' to continue as IP. 2.7 It appears that Mr. Mohan has contravened multiple provisions of the Code including section 208(2)(a) of the Code, Regulation 7(2)(a), (b), (f), (h) and (i) of IP Regulations and clauses 1,2,3,5,9,12,14,17,24 and 28 of the Code of Conduct specified thereunder. These contraventions are of serious nature and make one liable for being discontinuance as an IP and taking any assignment under the Code. The IBBI, therefore, issued SCN on 16th January, 2020. Submissions by Mr. Arun Mohan 3. Mr. Mohan replied to the SCN vide letter dated 6th February, 2020 and also submitted additional responses vide letter dated 15th July, 2020 and 13th August, 2020 which are summarized as follows: 3.1 It has been submitted that he was confirmed as Resolution Professional (RP) in the said CIRP of CD in the 1st meeting o....
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....Rs. 15,20,000/- (together with interest @12% p.a.) after which a complaint was filed by the complainant against Mr. Mohan. 3.4 Mr. Mohan had submitted that there is a delay of 11 days in filing the complaint from the alleged demand because unsuccessful repeated attempts were made by the complainant to induce Mr. Mohan to give up the contemplated legal/criminal action against complainant's wife. He further submits that the complainant falsely alleged that he visited the office of Mr. Paresh Kumar on 4-1-2020 and Mr. Mohan was also present. In fact, the complainant called Mr. Mohan on 3-1-2020 and pleaded for a meeting on 4-1-2020 to which Mr. Mohan refused. The same can be substantiated from Mr. Mohan's call records. 3.5 Mr. Mohan also submitted that the complainant again called him on 10-1-2020 for a meeting but he again refused which is also corroborated with verification report of CBI dated 10-1-2020. Further, the complainant concealed about receipt of the demand notice dated 7-1-2020 in his complaint dated 10-1-2020 and when he failed to lure the RP till 10-1-2020 to give up the legal actions, he lodged the complaint with CBI on false allegations. 3.6 Further, M....
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....r issuing SCN under the Code unless independent inspection and investigation is conducted. 3.12 Mr. Mohan also submitted that actions during CIRP in the present matter has been taken under authorisation and to implement decision of CoC in good faith, the same is protected under section 233 of the Code. 3.13 A criminal writ petition has been filed by Mr. Mohan before Hon'ble High Court with a prayer to quash the FIR and to set aside the order dated 14-1-2020 passed by Ld. Special Judge, (PC Act) CBI 13 which has been admitted, however, CBI has failed to file their reply. 3.14 Mr. Mohan appeared, for personal hearing (e-mode), before the DC along with his counsel on 17th August, 2020 wherein his counsel reiterated the submissions made in his written reply. Mr. Mohan submitted that the FIR was falsely lodged and it was nothing but a strategy to not to refund an amount of Rs. 15,20,000/- (together with interest @ 12% p.a.) as per the demand notice served to Mrs. Namrata Bugalia after approval by CoC. He further submitted that during judicial remand, no investigation was conducted as there was no basis for the complaint. He also submitted that Mrs. Bugalia was not an employ....
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.... the matter of FR Tech Innovations (P.) Ltd. 4.4 The DC notes that a complaint dated 10-1-2020 was filed against Mr. Mohan by Mr. Nishant Bugalia followed by a FIR on 11-1-2020. Mr. Mohan was arrested on 10-1-2020 and was sent to judicial custody on 12-1-2020. CBI prepared the first verification report on 10-1-2020 itself, i.e., the day of filing of complaint by the complainant and a further verification report on 11-1-2020. The bail application moved before Ld. Special Judge (PC Act) was allowed vide order dated 25-1-2020. 4.5 The DC also notes that the FIR against Mr. Mohan is yet to culminate into a chargesheet, however, the submission of Mr. Mohan that before issuing of the SCN, statutory requirements of sections 217, 218, 219 and 220 of the Code were not complied with by the IBBI since no independent investigation was conducted and thus, the SCN is illegal, unlawful and void ab initio is untenable. Regulation 11 of the IP Regulations gives power to IBBI to issue SCN based on findings of an inspection, investigation or on material otherwise available on record, if the facts prima facie disclose any contravention of the Code, Rules or the Regulations thereof. Regulation 11....