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2025 Supreme(Online)(NCLT) 532
NATIONAL COMPANY LAW TRIBUNAL
Dr. Venkata Ramakrishna Badarinath, Sh. Charan Singh, JJ
Manjeet Bucha – Appellant
Versus
Ramanujula NandaKumar Ramnath – Respondent
IA(I.B.C) - 1927/2024
For the Petitioner:Manjeet Bucha
For the Respondent:TANGIRALA LALITHA DEVI
Suspended management must cooperate with the Resolution Professional under Section 19 of the IBC to ensure timely completion of the Corporate Insolvency Resolution Process.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 19 - Resolution Professional's application for cooperation from suspended management - Corporate Debtor placed under Corporate Insolvency Resolution Process (CIRP) - Suspended management failed to provide necessary information and documents for CIRP, impacting timely completion - Court directed suspended management to comply within 10 days. (Paras 1-20)
(B) Compliance and Cooperation - Duty of suspended management to assist the Resolution Professional - Non-compliance by management can lead to further legal directions. (Paras 14-17)
Facts of the case:
The Resolution Professional of Trident Sugars Limited sought cooperation from the suspended management to fulfill obligations under the IBC after the company was admitted to CIRP. Despite reminders, essential information was not provided, hindering the process.
Findings of Court:
The court found that the suspended management had not cooperated adequately, which could delay the CIRP. It directed the management to provide the required information within 10 days.
Issues: Whether the suspended management complied with the Tribunal's directions to provide information to the Resolution Professional.
Ratio Decidendi: The court emphasized the obligation of the suspended management to assist the Resolution Professional under Section 19 of the IBC, stating that delays in compliance could hinder the CIRP process.
Result: Application disposed of with directions to the suspended management.
ORDER
1. This Application is filed by the Resolution Professional of Trident Sugars Limited (Corporate Debtor) under Section 19(2) of IBC, 2016, seeking directions to Respondents 1-4 to provide co-operation to the Applicant in discharging her duties as Resolution Professional.
2. The averments in the application in brief is that upon admission of the Company Petition under Section 7 of IBC, vide order passed in CP(IB) No. 259/7/HDB/2023 dated 09.07.2024, the Corporate Debtor i.e. Trident Sugars Limited was put under CIRP and the Applicant herein was appointed as Interim Resolution Professional and subsequently confirmed as Resolution Professional.
3. Pursuant to his taking over charge, the Resolution Professional caused public announcement on 13.07.2024. Further intimation about commencement of CIRP was sent to the suspended Board of Director(s) vide email dated 15.07.2024 and sought their assistance and co- operation to undertake the process. However, it is averred that except basic data as indicated in the table, the information / documents are not provided to the Applicant.
4. It is stated that despite issuing reminders on 26.07.2024 and 03.08.2024, by the Resolution Professional, the entire list of creditors and books of accounts were not submitted by the Respondents, as such the Resolution Professional could not prepare the data pertaining to creditors and prepared the same with the information available with him.
5. It is averred that the Resolution Professional on 27.07.2024 was provided with GST Portal Login and Annual Report of FY 2019-20, 2020-21 & 2021- 22. It is further stated that the Annual Reports were not filed with RoC. The Resolution Professional received only partial information from one Mr. Ankush, however the balance information and documents were not made available till date.
6. The Resolution Professional further submits that Respondent No.4 has attended all the COC meetings and informed that he was not involved in the day-to-day functioning of the Company, as such he expressed his inability to provide any information as sought for by the Resolution Professional.
7. The Resolution Professional submits that despite making every endeavour to manage the operations of the Corporate Debtor, owing to lack of information, he is unable to perform his functions as contemplated under the IBC, including taking control and custody of the Assets, monitoring and protecting the assets of the Corporate Debtor. Hence, this application.
8. Counter is filed by Respondents 1 & 2 denying the allegations made by the Resolution Profession and stated that the required available information have been provided and that they are extending their full cooperation in the CIRP process.
9. The statement showing the details sought by the Applicant, reply by the Respondents 1 & 2 and remarks of the Applicant on the information provided by the Respondents is tabulated as under:-
| S.No | Information sought | Information provided as per the Respondents | Remarks of Applicant on the information provided by Respondent |
| 1 | Closing Stock - Request you to provide details of stock with material codes, purchase price. | Provided . Stock of Sugar and Bagga is Zero Molasses is around 100 Tons Approx. Informed to RP that Company entered into O&M agreement on 21.10.2021 with one of the group company of Financial Creditor M/s Prudential Sugars Limited and running the factory till date. RP can obtain further information from Financial Creditor. | Only ambiguous and vague answers were provided and wanted to pass on the bucks to O&M Operator. |
| 2 | Deposits - detail / schedule of deposits, copy of deposit slips, bank statements, agreement copies and purpose of deposits | Bank statements provided | Bank statement does not provide us the specific information such as purpose of deposit & copy of deposit slips. The Respondents have only provided general information while the Applicant has sought specific answers. |
| 3 | Loans and advances - details / schedule of loans and advances, transaction/ evidence, ba | ||
