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TaxTMI 
TaxTMI 
TaxTMI 
2021 (1) TMI 1322
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.... Hemal Patel. For the Respondent No. 4 : Mr. Kunal Kanungo Adv. a/w Ms. Tanushree Sogani Adv. For the Respondent No. 5 : Mr. Sudam Patil Adv. ORDER PER: CHANDRA BHAN SINGH, MEMBER (T) 1. This is an Application filed by the Applicant seeking for the following reliefs: a. Direct the Respondents as detailed in this application to make such contributions to the assets of the Corporate Debtor equivalent to the sums as stated in this application, in respect of benefits wrongfully availed by from the Corporate Debtor. b. Pass appropriate directions/ orders in terms of Section 67 of the Code including for recovery/ restoration of legitimate amounts due to the Corporate Debtor. c. Intimate IBBI for initiating a complaint to the Special C....
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....ger Account maintained by the R1 and after the evaluation of the Balance sheet of the Corporate Debtor, the Applicant finds out that the advances have been given to R1 and the amount has not been repaid by the R1. The table showing accounting entries entered between the Corporate Debtor and R1. Particulars Amount in Rs. Shri Bajju Trading and Investment Private Limited Note: The net balance technically reflects certain advance given to R1 41,03,00,000/- Total 41,03,00,000/- 8. The Applicant submits that R5 is the statutory auditor for both Corporate Debtor as well as R1 for the period FY 2017-18 and earlier years. 9. The Applicant also submits that several emails were sent by the Applicant to Respondent No.1 but there was no respon....
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....for any wrongful or fraudulent trading with the Corporate Debtor. c. The alleged amount was given by the Corporate Debtor to R1 as the long-term borrowings (Loan) and not credit for trading activities, as there are no fraudulent transactions. The R1 submits that due to financial crunch and due to Covid-19 the R1 failed to repay the dues of the Corporate Debtor. d. The R1 further submits that these transactions do not fall under section 66 of the Code as these are the honest in nature. 13. The Respondent No.2 & 3 are the suspended directors of Royal Refinery. They have filed their reply and submit that the R2 & 3 are co-operating with the Applicant from the beginning of the CIRP and have been attending COC meetings. R2 & R3 also mention....
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.... 2556 of 2019 under section 66 of the Insolvency and Bankruptcy Code, 2016 has been filed by the Resolution Applicant mainly against the Respondent No. 1 M/s. Baiju Trading investment Private Limited and R2 and R3 who are suspended directors of Royal refinery private limited which is under CIRP vide order of this Bench dated 13.11.2019. The present application by the IRP/ RP has filed due to an identified suspicious transaction of the Corporate Debtor company with R1 whereby an amount of around Rs. 41.24 crores were receivable from R1 as per the tally data and Ledger accounts obtained by the Resolution Professional from the Directorate of Revenue (DRI). The IRP/RP mentions that DRI had confiscated all the financial data, computers etc. of t....
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....t in the above R2 and R3 have disclosed that there is an outstanding balance from of R1 of Rs. 41.24 crore as receivable by the Corporate Debtor. 20. However, it baffles the Bench to note that when the R2 and R3 i.e. the suspended directors file the reply in the present IA they fraudulently wrote off the total amount due by making an unexplained entry. The Bench has no doubt that this is with intent to defraud the Corporate Debtor Company. This cooked up Ledger is reproduced below: 21. Therefore, the Bench is beset that 4 sets of Ledger account as appearing in the books of accounts of i) Corporate Debtor collected from the DRI in May, 2019 where it shows as Rs. 41.24 crores, ii) ledger account produced by R1 where it shows the same amount....
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.... an opinion whether the corporate debtor has been subjected to any transaction covered under sections 43, 45, 50 or 66. (2) Where the resolution professional is of the opinion that the corporate debtor has been subjected to any transactions covered under sections 43, 45, 50 or 66, he shall make a determination on or before the one hundred and fifteenth day of the insolvency commencement date, under intimation to the Board. (3) Where the resolution professional makes a determination under sub-regulation (2), he shall apply to the Adjudicating Authority for appropriate relief on or before the one hundred and thirty-fifth day of the insolvency commencement date. 24. The Bench is aware that section 66 (1) of IBC imposes a liability on a....