MUMBAI BENCH, COURT V

I.A. 677 OF 2023

IN

CP (IB) NO.1023 OF 2021

Under Section 66 of the Insolvency & Bankruptcy Code, 2016 read with Rule 11 of the National Company Law Tribunal

Rules, 2016

Filed by

Mr. Vijendra Kumar Jain

…APPLICANT/RESOLUTION

PROFESSIONAL

vs.

Mr. Nitin Ramchandra Jadhav & Ors.

…RESPONDENT In the matter of:

State Bank of India

…FINANCIAL CREDITOR

vs.

Gajanan Solvex Limited …CORPORATE DEBTOR

Order Dated: 07.05.2024

Coram:

Hon’ble Ms. Reeta Kohli, Member (Judicial)

Hon’ble Sh. Sanjiv Dutt, Member (Technical)

Appearance:

For the Applicant: Adv. Mily Ghoshal For the Respondent: Adv. Ranjeet Agashe

1. The present application bearing I.A. No.677 of 2023 is filed by the Resolution Professional of the Corporate Debtor, Mr. Vijendra Kumar Jain (hereinafter referred to as the “Applicant”) seeking direction against the suspended board of directors, namely, 1) Mr. Nitin Ramchandra Jadhav, 2) Mr. Bhavrao RamKrishna More and 3) Mr. Amol Jadhav (hereinafter referred to as the “Respondents”) under Section 66 of the Insolvency and Bankruptcy Code, 2016 (hereinafter called as “the Code”) praying for following reliefs:-

“..this Hon’ble Tribunal be pleased to:-

a. Pass appropriate Orders/Directions declaring that the transaction enumerated in this application is fraudulent trading/ wrongful trading in terms of Section 66 of the IBC;

b. Pass appropriate Orders/Directions against the Respondent to make contribution of Rs.9,04,61,725/- or more to the Corporate Debtor;

c. Pass order/directions for further investigation of Enforcement/Investigation Agencies of the transaction highlighted by the Transaction Auditor;

d. Pass appropriate Orders/Directions to allow the newly appointed liquidator Mr. Ram Sethia to take over the present application (if required so) as and when appropriate Orders to the Application u/s 33 of the Code is allowed by this Tribunal;

e. And pass any such other order(s) as this Hon’ble Adjudicating Authority may deem fit and proper in the interest of justice”.

BRIEF FACTS OF THE CASE:

2. The Corporate Debtor was admitted under Corporate Insolvency Resolution Process (CIRP) by this Tribunal vide order dated 20.07.2022 in CP/1023/IBC(MB)/2021 wherein Mr. Vijendra Kumar Jain was appointed as the Interim Resolution Professional (IRP). The IRP issued the Public Announcement as per the provisions of Sections 13 and 15 of the Code. Thereafter, the Committee of Creditors (CoC) was constituted on 12.08.2022. The CoC in the First meeting held on 18.08.2022 appointed Mr. Vijendra Kumar Jain as Resolution Professional (RP) of the Corporate Debtor.

3. In the Second CoC meeting dated 03.09.2022, the COC appointed Mr. Parekh Shah & Lodha as the Forensic Auditor to carry out the transaction audit of the books of account of the Corporate Debtor for the last 5 years. However, in the Third CoC meeting dated 29.09.2022, the CoC noted that the suspended directors had failed to furnish the Audited Financials and Tally Back-up of Accounts of the Corporate Debtor for financial years 2017-18 to 2021-22 and for the broken period from 01.04.2022 to 20.07.2022 along with certain other documents and details as sought by the Resolution Professional and the Forensic Auditor. In these circumstances, the Resolution Professional filed an interlocutory application bearing I.A. No.3392 of 2022 under Section 19(2) of the Code before this Tribunal on account of the non-cooperation of the management which is pending adjudication.

4. Further, in the Third CoC meeting, it was noted that the Corporate Debtor i.e. Gajanan Solvex Limited, had made an investment of Rs.8,84,91,725/ - in its subsidiary Company by and under the name of M/s. Rio Resource PTE. Ltd. which is a Singapore branch of the Corporate Debtor. This Company (M/s. Rio Resource PTE. Ltd.) had Fixed Deposit of 3 (Three) Million USD with the Indian Bank, Singapore Branch. Thereafter, it was further informed to the CoC that the Indian Bank had filed an Application against one M/s. Gajanan Oil Private Limited (which had avail