2022 (11) TMI 956

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....Mr. Nikhil Saini, Advocates For the Respondent : Mr. Mohit Nandwani, Advocate for R-2 Mr. Akshat Bajpai, Advocate for RP For the Appellant : Mr. Mohit Nandwani, Advocate For the Respondent : Mr. Abhijeet Sinha, Mr. Prateek Gupta, Mr. Nikhil Saini, Advocates Advocate for R-2 & 3 Mr. Akshat Bajpai, Advocate for RP ORDER These two Appeals have been filed against the Order dated 22.10.2021 passed by National Company Law Tribunal, New Delhi, Court-V wherein the direction has been issued by the Adjudicating Authority to institute a prosecution against the Respondents (Appellants before us) particularly under Section 70 of IBC, 2016. 2. The Appellants before us have been the ex-directors of the Corporate Debtor. An Application be....

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....n 22.02.2021 under Section 19(2) of the Code being I.A. No. 1089 of 2021 against Members of suspended board seeking directions for non-cooperation as some of the Documents mentioned were not provided and contained discrepancy." 5. It is true that the Adjudicating Authority while considering the proceedings under IBC has full jurisdiction to make a reference to the Board or the Central Government to file a complaint for initiating any prosecution. In the present case, there was no Application or Request made by RP or any party to initiate any prosecution. Section 70 under which Prosecution has been directed to initiate, provides for as follows: "Section 70: Punishment for misconduct in course of corporate insolvency resolution pr....

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....xtend to one crore rupees, or with both: Provided that nothing in this section shall render a person liable to any punishment under this section if he proves that he had no intent to do so in relation to the state of affairs of the corporate debtor. (2) If an insolvency professional deliberately contravenes the provisions of this Part the shall be punishable with imprisonment for a term which may extend to six months, or with fine which shall not be less than one lakh rupees, but may extend to five lakhs rupees, or with both." 6. Section 70(1)(c) provides that when Corporate Debtor does not deliver to the resolution professional all books and papers in his control or custody belonging to the corporate debtor and which h....