TaxTMI 
TaxTMI 
2023 (8) TMI 1324
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....of 2023 and CA (AT) (Ins.) No. 261 of 2023 have been filed by Narappa Manohar Reddy, who is a shareholder and erstwhile Director of M/s. Sagar Power (Neerukatte) Private Limited. Mr. Narappa Manohar Reddy, who is the Appellant in both the appeals, has filed the appeals aggrieved by the order dated 23.6.2023 ("Impugned Order") passed by National Company Law Tribunal, Bengaluru Bench (Adjudicating Authority) in IA No. 568 of 2022 and IA No. 361 of 2021, both filed in CP(IB) No. 243/BB/2018. 2. In CA (AT) (Ins.) No. 257 of 2023, the Appellant is aggrieved by the order of the Adjudicating Authority in which he has been found to trespass on a property, allegedly owned by the corporate debtor, situated at Survey 463/2, Bajattur Village, Putur ....
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....or, its other liabilities, books of accounts etc. to assess the financial condition of the corporate debtor. The Appellant has stated that he had provided all the relevant and necessary information to the liquidator, but despite his having done so, the liquidator filed IA No. 361 of 2021 under section 19(2) seeking direction of the Adjudicating Authority to the Appellant to provide all the original documents in possession of the respondent in support of acquisition of the said land as appearing in the Audited Financial Statement of the corporate debtor, and therefore, Appellant has further stated that the land in question is his personal property and does not belong to the corporate debtor. Therefore, there is no question of his trespassing....
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....ation of the Corporate Debtor. The respondents should cooperate with the Liquidator in respect of supply of the documents as mentioned in prayers in the IA; and they cannot escape their obligation. Therefore, this Adjudicating Authority in order to implement the intention of the Code directs the ex- director/management to extent full co-operation and simultaneously furnish all the requisite documents related to Corporate Debtor as desired in the prayers." 6. The Learned Counsel for Respondent has submitted that the relevant provision of law which gives the mandate that the ex-directors have to provide the requisite assistance and cooperation to the RP/ Liquidator during the CIRP and the Liquidation Process. In this context, Sections 19 a....
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....dator for references to the interim resolution professional. 7. A close perusal of the Impugned Order in respect of the furnishing of the original documents in possession in support of acquisition of land as appearing in the Audited Financial Statement shows that the Adjudicating Authority has only directed R-1 (Appellant) to provide all the original documents in his possession in support of acquisition of land as appearing in the financial statement of the liquidator. Such an order does not cause any prejudice to the appellant, but merely requires the appellant to produce original documents which may be in his possession in support of acquisition of said land. It stands to reason that in case the Appellant for some reason is not in poss....
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.... 'Corporate Debtor' does not render assistance or cooperation to the 'Interim Resolution Professional', the 'National Company Law Tribunal' 'Adjudicating Authority' on the application projected by the 'Interim Resolution Professional' is empowered to pass an order and direct the person (s) to comply with the instructions of the "Interim Resolution Professional' and cooperate with him in the collection of information and management of the 'Corporate Debtor" 9. It is seen from the above judgment that an application is placed on the promoters and personnel of the corporate debtor to cooperate with the Interim Resolution Professional ("IRP") and help in timely completion of the resolution or li....
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....le property till the disposal of CP(IB) No. 243/BB/2018." 11. A perusal of para 4 of the above Impugned Order shows that despite service of notice, the Respondent (Appellant herein) did not appear before the Adjudicating Authority and case was proceeded ex-parte against him. Para 5 of the Impugned Order clearly shows that in view of the property being held by the Corporate Debtor as appearing in corporate debtor's Audited Books of Accounts, the Appellant was restrained from trespassing on the property of the corporate debtor or dealing with the property owned by the corporate debtor, and was directed to maintain status quo with regard to the scheduled property till disposal of the CP(IB) No. 243/BB/2018. 12. We do not find that the Im....