Naresh Kumar Goel vs Shri Hare Krishna Kajaria

Subrata Kumar Dash, Member (Technical)

IA No. 21/2020

In the present application, Corporate Insolvency Resolution Process (hereinafter referred as ‘CIRP’) proceedings were initiated against M/s B R Knitwears Pvt. Ltd., the corporate debtor, when CP (IB) No. 300/Chd/Hry/2019 was admitted by this Adjudicating Authority vide order dated 21.11.2019. The instant IA has been filed by the Interim Resolution Professional (hereinafter referred as ‘IRP’) of M/s B R Knitwears Pvt. Ltd., under Section 19(2) of the Insolvency and Bankruptcy Code, 2016 seeking directions to all Directors as per signatory details available on the website of Ministry of Corporate Affairs (hereinafter referred as ‘MCA’) and Statutory Auditor of the corporate debtor to appear personally to provide requisite information, assistance and cooperation to IRP/RP.

The brief facts of the case are as follows:-

2.1 It is submitted by the applicant that the IRP/RP made a public announcement on 24.11.2019 in the newspaper and website of IBBI (Annexure A-2). Intimation letter dated 23.11.2019 was sent to corporate debtor via speed post informing about the commencement of CIRP w.e.f. 21.11.2019 and Mr. Naresh Kumar Goyal was appointed as IRP/RP by this Bench vide its order dated 23.11.2019. The IRP/RP informed the respondent No. 1-Krishna Kajaria, suspended Director of corporate debtor vide letter dated 23.11.2019 about the CIRP initiation and through e-mail dated 23.11.2019 seeking their cooperation and information about the assets, finance, operations of corporate debtor but till date no response or required information had been received (Annexure 5). Intimation letter dated 08.01.2020 was sent again via speed post which returned back with remarks “left the place”.

2.2 The IRP/RP sent an intimation letter dated 23.11.2019 and 02.12.2019 via speed post which was successfully delivered to respondent No. 2- Statutory Auditor, M/s U.P. Singh & Associates, Chartered Accountants of corporate debtor about commencement of CIRP (Annexure 6). However, till date IRP/RP did not receive any documents/information.

2.3 The IRP/RP intimated about commencement of CIRP vide letter dated 03.12.2019 via speed post to Smt. Urmil Arora, Suspended Director of Corporate Debtor and sought information/documents for CIRP Process (Annexure 7). Smt. Urmil Arora sent letter dated 10.01.2020 which was received on 18.01.2020 by IRP/RP stating that she agreed to become the Director of Corporate Debtor only to provide humanly support to Kajaria family who were known to her for last 15 years and she do not have any kind of financial or other interest in corporate debtor. Further, it was stated that she has neither attended any board meeting nor in possession of documents relating to affairs of corporate debtor (Annexure 8). On 27.11.2019, the IRP/RP visited the registered office of the corporate debtor.

Notice of this petition was issued to respondents vide order dated 03.02.2020, 05.01.2022. None appeared on behalf of respondents nor any reply was filed. Affidavit of service vide Diary No. 1938 dated 12.03.2020 was filed. Vide order dated 20.04.2022, last opportunity was granted to the respondents to appear and join the proceedings, otherwise ex parte proceedings were directed to be initiated. None appeared on behalf of respondents. In view of the direction in order dated 20.04.2022, the respondents were proceeded ex parte on 27.09.2022.

We have heard the learned counsel for the applicant and perused the material available on record. None appeared on behalf of respondents and neither any reply was filed. As per Section 19(1) of the Code, the suspended management is under obligation to extend all assistance and cooperation to the IRP/RP as required in managing the affairs of the company.

In view of the above discussion, we direct Mr. Shri Krishna Kajaria - respondent No.1 and U P Singh and Associates - respondent No.2, Statutory Auditor of corporate debtor to provide assistance as required by the IRP/RP and complete the process within three weeks from the date of this order, failing which the IRP/RP is at liberty to approach local police on the basis of this order and local police to render all necessary assistance to IRP/RP. In case of non-compliance, the IRP/RP is at liberty to move an appropriate application before this Adjudicating Authority.

Accordingly, IA No. 21/2020 is allowed and disposed of.

IA No. 69/2021

In the present application, CIRP proceedings were initiated against M/s B R Knitwears Pvt. Ltd., the corporate debtor, when CP (IB) No. 300/Chd/Hry/2019 was admitted by this Adjudicating Authority vide order dated 21.11.2019. The instant IA has been filed by the Liquidator of M/s B R Knitwears Pvt. Ltd., under Section 19(2) of the Insolvency and Bankruptcy Code, 2016 seeking directions against directors of suspended board of corporate debtor for providing requisite information, assistance and cooperation to Liquidator.

The brief facts of the case are as follows:-

2.1 The COC in the 2nd Meeting held on 22.12.2019 resolved to file an application for liquidation of the corporate debtor. The order was passed on 13.03.2020 by this Bench for initiation of liquidation and applicant/Resolution Professional was appointed as Liquidator (Annexure A-2).

2.2 It is submitted by the applicant that the RP made a public announcement on 15.03.2020 in the newspaper and website of IBBI. Application bearing IA No. 21 of 2020 under Section 19(2) of the IBC before this Bench seeking directions to respondents for necessary cooperation and assistance. Notice was issued to the respondents and affidavit of service was filed vide Diary No. 1938 dated 12.03.2020. After going through records of Corporate Debtor available on the website of MCA, the applicant came to know that some information could be extracted/obtained from Ex-Directors of Corporate Debtor.

2.3 The applicant intimated respondent No. 1 vide letter dated 18.01.2020, respondent No. 2 vide letter dated 18.01.2020, respondent No. 3 vide letter dated 03.12.2019 via speed post with respect to the initiation of CIRP and seeking information/documents for smooth functioning of CIRP process. Further, the letter returned back with remarks “left the place” from respondent Nos. 1&2. Respondent No. 3 replied via letter dated 10.01.2020 which was received on 18.01.2020 by applicant stating that she agreed to become the Director of Corporate Debtor only to provide humanly support to Kajaria family who were known to her for last 15 years and she do not have any kind of financial or other interest in corporate debtor. Further,she has neither attended any board meeting nor in possession of documents relating to affairs of corporate debtor (Annexure A-7). Again intimation letter was delivered on 20.03.2020 to respondent No. 3 for providing information and reply dated 03.06.2020 was received wherein she denied that she has never received any remuneration or fee against any involvement in the business or management of the company (Annexure A-9).

2.4 The following information is pending from the respondent:-

i. List of Directors as on the CIRP commencement date i.e. 21.11.2019.

ii. Details of business operations for the previous two years.

iii. Financial and Operational transaction for the previous two years.

iv. List of Assets and Liabilities as on the CIRP date i.e. 21.11.2019.

v. Details of inventories and list of sundry debtors as on the CIRP date 21.11.2019.

vi. Audited Financial Statements for the previous two financial years.

vii. Updated current financial status of the Company alongwith the supporting financial statements and records from 01.04.2019 to 21.11.2019.

viii. List of Bank accounts maintained by the corporate debtor and current bank statements w.e.f. 01.04.2019 or from the date of last audited accounts, up to till date.

ix. List of all the loan being availed presently along with the sanction letters and current out standings.

x. Lists of all the credit facilities currently being availed by the corporate debtor, current statement and the latest sanction letters.

xi. Contact details of all the banks and financiers.

xii. Particulars of a debt due from or to the corporate debtor with respect to related parties.

xiii. Details of guarantees that have been given in relation to the debts of the corporate debtor by other persons, specifying which of the guarantors is a related party.

xiv. Names and addresses of the members holding at least one per cent stake in the corporate debtor alongwith the size of stake.

xv. Details of all material litigations and ongoing investigations or proceedings initiated by Government and Statutory Authorities.

xvi. Number of workers and employees and liabilities of the corporate debtor towards them.

Notice of this petition was issued to respondents vide order dated 05.01.2022 and 20.04.2022. Affidavit of service vide Diary No. 02152/1 dated 24.03.2022 was filed. None appeared on behalf of respondents nor any reply was filed. Keeping in view the facts and circumstances, it seems that respondents are not interested in defending the present matter. Hence, respondents proceeded against ex parte on 20.04.2022. Thereater, respondent No. 3 was directed to file reply. Records indicate that no reply had been filed by the respondents despite direction by this Bench.

We have heard the learned counsel for the applicant and perused the material available on record. No reply was filed by the respondents. As per Section 19(1) of the Code, the suspended management is under obligation to extend all assistance and cooperation to the Liquidator as required in managing the affairs of the company.

In view of the above discussion, we direct Mr. Shri Krishna Kajaria - respondent No.1, Ms. Sunita Kajaria - respondent No. 2 and Ms. Urmil Arora - respondent No. 3, Directors of Suspended Board of Corporate Debtor to provide information, necessary assistance and cooperation as required by the Liquidator and complete the process within three weeks from the date of this order, failing which the Liquidator is at liberty to approach local police on the basis of this order and local police to render all necessary assistance to Liquidator.This Adjudicating Authority further directs that the Liquidator should also make all efforts simultaneously to retrieve the required information from the computerized data of the corporate debtor from the systems handed over to Liquidator. For retrieving relevant information, Liquidator may take the help of any digital forensic companies from the empanelled list available with the Registry of this Adjudicating Authority, if required. In case of non-compliance, the Liquidator is at liberty to move an appropriate application before this Adjudicating Authority.

Accordingly, IA No. 69/2021 is allowed and disposed of.