TaxTMI 
TaxTMI 
2021 (9) TMI 197
X X X X Extracts X X X X
X X X X Extracts X X X X
..... The Appellant has sought the reliefs of setting aside the impugned order as stated above and also that Respondent No.2 & 3 i.e. erstwhile Directors of the Corporate Debtor in 'Corporate Insolvency Resolution Process' (CIRP) to deposit the money etc. 3. The Appellant is in the business of manufacturer and distributor of transformers, fabrications etc., for more than 3 decades. The Appellant has supplied to the Corporate Debtors (in CIRP) in the normal course of business during the Financial year 2016-17 total value of goods of Rs. 13,17,98,130/- and has raised invoices for the same. The Appellant has also received the payment of Rs. 11,38,77,295/-. As a result of their further supply in the Financial Year 2017-18 after getting of payment received a balance amount of Rs. 2,66,75,764/- remained outstanding. All the supplies are supported by invoices. The supply by the Appellant to the Corporate Debtor - M/s. 'Enestee Engineering Limited' (EEL) (in CIRP) was earlier made when the Corporate Debtor was not in CIRP and was a proprietorship firm as it appears from the invoices. The Appellant has to go under CIRP vide the Adjudicating Authority order 17.09.2019. The Appellant has also ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on the application of the Official Liquidator, or the Company Liquidator or any creditor or contributory of the company, may, if it thinks it proper so to do, declare that any person, who is or has been a director, manager, or officer of the company or any persons who were knowingly parties to the carrying on of the business in the manner aforesaid shall be personally responsible, without any limitation of liability, for all or any of the debts or other liabilities of the company as the Tribunal may direct: Provided that on the hearing of an application under this sub-section, the Official Liquidator or the Company Liquidator, as the case may be, may himself give evidence or call witnesses. (2) Where the Tribunal makes any such declaration, it may give such further directions as it thinks proper for the purpose of giving effect to that declaration and, in particular,- (a) make provision for making the liability of any such person under the declaration a charge on any debt or obligation due from the company to him, or on any mortgage or charge or any interest in any mortgage or charge on any assets of the company held by or vested in him, or any person on his beha....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... SREI Equipment Finance Ltd. Amit Gupta 2019SCC On Line nclat693 d. Indian Overseas Bank Vs. Mr. Dinkar T. Venkatasubramaniam in Company Appeal (AT)(Ins) No. 267 of 2017 dated 15.11.2017 All these judgments in one way or the other bans withdrawal of money from the bank accounts of the Corporate Debtor during the CIRP under Section 14 of the Code. He has also presented the movement of funds of the Corporate Debtor's Cooperative Bank account from which the Appellant has withdrawn the money and the same is reproduced below: SL No. Date Particulars Amount Payment Receipt a. 23.07.2019 Bank Charges - payments 142.0 B 20.09.2019 Yutika Sales Corporation 36,00,000.00 c. 20.09.2019 R-3-Cheque 29341 35,95,000.00 d. 01.10.2019 Vishwaraj Infrastructure Ltd 99,81,790.00 e. 01.10.2019 R-3-Cheque- 29342 99,80,000.00 f. 03.10.2019 ADCC Infracon Ltd 20,00,000.00 g. 03.10.2019 R-3-Cheque- 29343 20,00,000.00 h. 04.10.2019 ADCC Infracon Ltd. 30,00,000.00 i. 04.10.2019 R-3-Ch....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rity shall by order declare moratorium for prohibiting all of the following, namely:- (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. (2) The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period. (3) The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Govern....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the potential loss to the creditors of the corporate debtor. Explanation.-For the purposes of this section a director or partner of the corporate debtor, as the case may be, shall be deemed to have exercised due diligence if such diligence was reasonably expected of a person carrying out the same functions as are carried out by such director or partner, as the case may be, in relation to the corporate debtor. Section 67. (1) Where the Adjudicating Authority has passed an order under sub-section (1) or sub-section (2) of section 66, as the case may be, it may give such further directions as it may deem appropriate for giving effect to the order, and in particular, the Adjudicating Authority may- (a) provide for the liability of any person under the order to be a charge on any debt or obligation due from the corporate debtor to him, or on any mortgage or charge or any interest in a mortgage or charge on assets of the corporate debtor held by or vested in him, or any person on his behalf, or any person claiming as assignee from or through the person liable or any person acting on his behalf; and (b) from time to time, make such further directions as may be ....