JUDGEMENT

[Per; Shreesha Merla, Member (T)] Aggrieved by the order dated 01.06.2021 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi, Principal Bench) in Company Appeal (AT) (Insolvency) No. 452 of 2021 IA-2070(PB)/2021 in CP No. (IB)-933(PB)/2019, Mr. Mukund Choudhary & Anr. preferred this Appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as ‘The Code’). By the impugned order, the Adjudicating Authority has disposed of I.A. No. 2070(PB)/2021 filed by the Resolution Professional under Section 19(2) of the Code seeking direction to the suspended directors / the Appellants herein to cooperate and provide signed copy of the financial statements for the Financial Year of 2019-2020, observing as follows:

“6. Since CIRP/Liquidation is to be completed in time bound manner, the AA cannot grant time to file Reply/Replies to various IAs filed by aggrieved parties during the process of CIRP. It is settled position of law that in terms of provisions of Section 19 of Code, the personnel of CD, its promoters or any other person associated with the management of CD shall extend all assistance and co- operation to IRP as may be required by him, in managing the affairs of CD. Therefore, in order to avoid further delay, it would be just and proper to direct the Respondents to extend the requisite co-operation to the Applicant in discharge of his functions including to provide signed copy of Financial Statements for the FY of 2019-20.

7. In the result, IA-2070(PB)/2021 in CP No. (IB)- 933(PB)/2019 is hereby disposed by directing the Respondents to cooperate and provide signed copy of the financial statements for FY of 2019-2020, within a period two weeks from the date of receipt of copy of this order.

And the Applicant is also directed to furnish the requisite documents, if any, asked for by the Respondents for the above purpose.” 2. It is the case of the Appellants that in view of the management being in control of the Respondent / Resolution Professional (RP), the balance sheet as on 31.03.2021 being prepared by him had some objectionable entries and therefore, the Appellants have serious objection to the various Company Appeal (AT) (Insolvency) No. 452 of 2021 entries in the Balance Sheet and accordingly had sought for clarification. It is submitted that the Appellant are not inclined to sign the financial statement as prepared by the RP without due justification and clarity.

3. It is further submitted that the Adjudicating Authority disposed of the Application without giving opportunity to the Appellants to file reply placing on record their objections, while directing the Appellants to cooperate and provide the signed copy of the Financial Statement for Year 2019-20 within a period of two weeks from the date of receipt of the impugned order copy. It is submitted that the RP acts and executes in the name and on behalf of the Corporate Debtorall deeds, receipts and other documents and hence the RP is competent to sign the Balance Sheet prepared by him and the Appellant should not be coerced to sign the Financial Statement as they are already suspended from the management by the Corporate Debtor company.

4. It is further contended that the draft Balance Sheet prepared by the RP had serious discrepancies and hence the Appellants sought clarification vide email dated 04.03.2021 but there was no reply. Learned Counsel appearing for the Appellants draw our attention to the General Circular No.

08/2020 dated 06.03.2020 relating to filing of Form in the Registry (MCA-

21) by the IRP/RP/Liquidator appointed under the Insolvency and Bankruptcy Code, 2016, the relevant para of which is detailed as hereunder:

“(iii) The IRP/RP/Liquidator shall be responsible for filing all the eforms in the MCA portal and sign the form in the capacity of CEO in order to meet filing protocol in the existing forms architecture. However, this shall in no way affect his legal