Proceedings against ex-directors u/s 70 couldn’t be sustained as RP could’ve obtained a/c details from creditor bank
- Blog|News|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 31 May, 2022
Latest from Taxmann
Case Details: Venugopal Dhoot v. Pravin R. Navandar - [2021] 130 taxmann.com 286 (NCLAT- New Delhi)
Judiciary and Counsel Details
-
- Jarat Kumar Jain, Judicial Member and Dr. Ashok Kumar Mishra, Technical Member
- Amir Arsiwala, for the Appellant. Shyam Kapadia, Vishnu Shriram, Aditya V. Singh, Ashwij Ramaiah, Kesarlal Gandhi, Advs., Ms. Sarita Surve, U.S. Kadam and Pradipkumar N. Dhoot for the Respondent.
Facts of the Case
The Corporate Insolvency Resolution-Process (CIRP) of the corporate debtor was commenced and RP was appointed. The RP had alleged that despite repeated requests and instructions, appellant-ex-directors of corporate debtor failed to hand over all information including books of account/bank accounts of the corporate debtor.
Consequently, the RP filed an application under section 19(2) against appellants seeking necessary direction for co-operation. In response, appellants contended that whatever documents in their possession had already been handed over to RP.
NCLAT Held
However, It was noted that the bank account details of the corporate debtor could be obtained by RP from a bank that was under his control at moment. Further, RP being a competent professional and banker within his charge could have reconstructed books of account with the assistance of an expert IT professional.
Also, the RP could also have taken the assistance of the concerned Registrar of Companies/MCA website and had obtained financial statements/annual return – But, he failed to do so.
In such circumstances, it could not be said that appellants were fully responsible for the non-availability of documents. Therefore, proceedings initiated by NCLT under section 70 against the appellant for alleged misconduct in course of CIRP could not be sustained.
Case Review
-
- Pravin R. Navandar, In re [2021] 125 taxmann.com 173/164 SCL 441 (NCLT – Mum.) (SB) (para 13) reversed.
List of Cases Referred to
-
- Pravin R. Navandar, In re [2021] 125 taxmann.com 173/164 SCL 441 (NCLT – Mum.) (SB) (para 1).
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
