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2025 Supreme(Online)(NCLT) 438
IN THE NATIONAL COMPANY LAW TRIBUNAL
HYDERABAD BENCH – 1
VC AND PHYSCIAL (HYBRID) MODE
ATTENDANCE CUM ORDER SHEET OF HE HEARING HELD ON
29-01-2025 AT 11:00 AM
CP(IB) No 77/7/HDB/2022
AND
IA (IBC) 1411 & 1991/2024 in CP(IB) No 77/7/HDB/2022
u/s. 7 of IBC, 2016
IN THE MATTER OF:
IDBI Bank …Financial Creditor
AND
M/s. Trichy Tanjavur Expressways Ltd …Corporate Debtor
C O R A M:-
DR. VENKATA RAMAKRISHNA BADARINATH NANDULA, HON’BLE MEMBER (JUDICIAL)
SH. CHARAN SINGH, HON’BLE MEMBER (TECHNICAL)
O R D E R
IA (IBC) 1411/2024:
Order pronounced. In the result, we direct the ex-management/suspended
Directors of the Corporate Debtor to provide the information to the Resolution
Professional within a period of 15 days from the date of this order, lest coersive
steps will be ordered.
Accordingly, the IA is disposed of.
IA 1991/2024:
Ld. Counsel Shri H.K. Chaturvedi for the Applicant present through VC. Ld.
PCS Ms. Sandhya for Respondent No.1 present through VC. Ld. Counsel Mr.
C.S. Chouhan for R-2 present through VC and submits that in view of certain
developments, the present application has become infructuous. We therefore,
direct the Ld. Counsel to file a memo explaining the circumstances, which
according to them has made the Application infructuous. Let a copy of the memo
be served to the parties on record. Objections if any on the memo be filed.
Call on 26.02.2025
Sd/- Sd/-
MEMBER (T) MEMBER (J)
IN THE NATIONAL COMPANY LAW TRIBUNAL
HYDERABAD BENCH -1
IA (IBC) 1411 of 2024
In
CP (IB) No. 77/7/HDB/2022
(Under Section 19(2) And 60(5) of IBC, 2016 read with Regulation 30 of IBBI (Insolvency
Resolution Process for Corporate Persons) Regulations 2016 & read with Rule 11, National
Company Law Tribunal Rules, 2016)
IN THE MATTER OF M/s. TRICHY-THANJAVUR
EXPRESSWAYS PRIVATE LIMITED
Between:
RAGHU BABU GUNTURU,
Resolution Professional,
IBBI NO. IBBI/IPA-002/IP-N00025/2016-2017/10053
M/s. Trichy-Thanjavur Expressways Private Limited,
1st Floor, Golden Heights, Plot No. 9, Raidurg.
Hyderabad, Telangana-500081
… Applicant/Resolution professional
Versus
1. MR. SRINIVASA RAO ΚΑΜΜΑ
Plot no.1129/a, road no.36,
Hitec city road jubilee hills,
Hyderabad, Telangana, India, 500033
IA (IBC) 1411/2024 in
C.P. (IB) No. 77/7/HDB/2022
Date of Order: 29.01.2025
2
2. MR. NAMA RAMA RAO
Plot no.1129/a, road no.36,
Hitec city road jubilee hills
Hyderabad, Telangana, India, 500033
3. MR. SINGARAVEL
Plot no.1129/a, road no.36,
Hitec city road jubilee hills,
Hyderabad, Telangana, India, 500033
...Respondents/Directors (Suspended Powers)
IN THE MATTER OF
IDBI BANK
NMG Department,
D.No.5-9-89/1 and 2, Chapel Road,
P.B. Num 370, Hyderabad-500001
…Financial Creditor
Versus
M/S Trichy-Thanjavur Expressways Private Limited
Madhucon House, Plot no. 1129/A
Road No.36, High-Tech City Road,
Jubilee Hills, Hyderabad, Telangana, India-500033.
...Corporate Debtor
Date of order:29.01.2025
IA (IBC) 1411/2024 in
C.P. (IB) No. 77/7/HDB/2022
Date of Order: 29.01.2025
3
Coram:
Dr. Venkata Ramakrishna Badarinath Nandula, Hon’ble Member (Judicial)
Shri Charan Singh, Hon’ble Member (Technical)
Appearance of Parties/Counsels:
For the Resolution Professional : Mr CH. Srinivasulu , Advocate
Resolution Professional : Mr. Raghu Babu Gunturu,
For the Respondents : Mr. H.K. Chaturvedi, Advocate
PER: BENCH
For the Petitioner:CH SRINIVASULU
Suspended Directors must cooperate with the Resolution Professional in the Corporate Insolvency Resolution Process, as mandated by Section 19 of the IBC.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 19(2) and 60(5) - Corporate Insolvency Resolution Process (CIRP) - Application filed by Resolution Professional seeking assistance from suspended Directors of Corporate Debtor - Respondents failed to provide necessary information, hindering the CIRP - Tribunal directed Respondents to comply with requests for information within 15 days. (Paras 1, 12, 26, 42, 45)
(B) Corporate Debtor's management obligations - Section 19(1) mandates cooperation with the Resolution Professional - Non-compliance by suspended Directors noted, impacting the resolution process. (Paras 40, 41)
(C) NCLAT's stay order - Clarified that it does not bar the Resolution Professional from collecting necessary information for the CIRP. (Paras 43, 44)
Facts of the case:
The Resolution Professional filed an application against suspended Directors for failing to assist in the CIRP initiated on 22.08.2023, which was hindered by their refusal to provide information, citing ongoing appeals.
Findings of Court:
The Tribunal found that the suspended Directors had not complied with their obligations under the IBC and directed them to furnish the required information to the Resolution Professional.
Issues: Whether the suspended Directors failed to comply with Section 19 of the IBC and if the NCLAT's order restricted the CoC from extending the CIRP period.
Ratio Decidendi: The Tribunal held that the NCLAT's order did not prevent the Resolution Professional from collecting necessary information and emphasized the obligation of the suspended Directors to cooperate in the CIRP.
Result: Respondents directed to provide information within 15 days.
ORDER
1. The present Application is filed by Raghu Babu Gunturu, Resolution Professional ( herein after referred as ‘RP/Applicant’) of M/s. Trichy- Thanjavur Expressways Private Limited (herein after referred as ‘Corporate Debtor’) against the suspended Directors / suspended powers of the corporate debtor ( herein after referred to as “Respondents”) under section 19(2) and 60(5) of The Insolvency and Bankruptcy Code, 2016 (herein after referred to as “IBC”) read with Regulation 30 of IBBI (Insolvency Resolution Process For Corporate Persons) Regulations 2016 & read with Rule 11, National Company Law Tribunal Rules, 2016, seeking to direct the respondents to assist and cooperate with the applicant in the Corporate Insolvency Resolution Process(CIRP) and direct the respondents to furnish the information / documents as per the requirement of the Arbitral Tribunal and support in the Arbitration Proceedings.
2. It is averred that this Tribunal, vide order dated 22.08.2023, admitted the Corporate Debtor into the Corporate Insolvency Resolution Process (CIRP) and appointed the Interim Resolution Professional (IRP), Raghu Babu Gunturu, having Registration No. IBBI/IPA-002/IP-N00025/2016- 2017/1005 and subsequently confirmed as the RP as per Section 22 of the IBC.
3. Subsequently, that the RP issued the Public Announcement on 26.08.2023 specifying that the 07.09.2023 as the last date for receipt of claims. In response to the Announcement, five Financial Creditors filed their claims as on 07.09.2023. The claims received were verified and the List of Creditors was prepared on 16.09.2023 and the same was filed before this Tribunal on 16.09.2023.
4. It is averred that the RP, with the approval of the Committee of Creditors (hereinafter referred to as ‘CoC’) in its 1st meeting held on 21.09.2024, filed a claim of ₹69 Crores under the Vivad se Vishwas Scheme for settlement with the National Highway Authority of India (NHAI).
5. It is averred that the Resolution Professional sent an email to the Corporate Debtor dated 25.08.2023, informing the suspended Board of Directors of the Corporate Debtor about the initiation of the CIRP and requested for the necessary information. On 29.08.2023, the Resolution Professional sent a checklist detailing the required information. In response, the Corporate Debtor sent two emails, dated 12.09.2024, stating that the appeal is pending before the Hon'ble NCLAT and requesting that to stop for seeking information and denied to provide information.
6. It is further averred that the Resolution Professional appointed a Registered Valuer and provided them with the available information. However, due to a lack of complete information, the valuation process could not be finalized to date. It is averred that, from the outset of the CIRP, the erstwhile management of the Corporate Debtor never provided any information or support the CIRP. Moreover, it has been stated by the erstwhile management of the Corporate Debtor that an appeal has been filed at the Hon’ble NCLAT challenging the admission of the CIRP for the Corporate Debtor.
7. It is further submitted that, on 10.10.2023, the Hon'ble NCLAT Chennai, in Company Appeal (AT) (CH) (Ins) No. 310/2023, directed that “Till such time, the CoC shall defer its proceedings on certain issues.”
8. It is averred that the Respondents never provided any information regarding the pendency of the arbitration proceedings. Upon becoming aware of the arbitration proceedings and considering the moratorium under Section 14 of the IBC, which is not applicable to cases filed by the Company, the Resolution Professional requested the resumption of the arbitration proceedings. That on 16.02.2024, the Resolution Professional filed an application before the NHAI for claiming a termination claim of an amount of Rs. 256.32 crores as per the terms of the Concession Agreement dated 15.06.2006. The NHAI replied on 01.03.2024, stating that the matter is already pending before the Hon'ble Arbitral Tribunal,
