IN THE NATIONAL COMPANY LAW TRIBUNAL

BENGALURU BENCH

(Exercising powers of Adjudicating Authority under

The Insolvency and Bankruptcy Code, 2016)

(Through Physical/Video – Conferencing/Hybrid Mode)

IA No. 182 of 2021 in

C.P. (IB)No.304/BB/2019

U/s. 66 of the Insolvency and Bankruptcy Code, 2016

R/w Rule 11 of National Company Law Tribunal Rules, 2016

In the matter of:

Mr. Jugraj Singh Bedi

Resolution Professional of

M/s. Green Farm Tech Private Limited … Applicant/Resolution Professional

Versus

1. Mr. Ramesh B. Gowda

Former Director of M/s Green Farm Tech Private Limited

Son of Mr. Bomme Gowda,

Aged Major, No. 325/1, RMV Extension,

5th Cross, 14th Main, Sadashivnagar,

Bangalore – 560080 … Respondent No.1

2. Mrs. Kaluvoy Madhavi

Former Director of M/s Green Farm Tech Private Limited

Wife of Ramesh B. Gowda,

Aged Major, No. 325/1.\, RMV Extension, 5th Cross, 14th Main,

Sadashivnagar, Bangalore, 560080 … Respondent No.2

Order Delivered on: 24.04.2024

Coram: 1. Hon’ble Shri. K.Biswal, Member (Judicial)

2. Hon’ble Shri Manoj Kumar Dubey, Member (Technical)

Parties/Counsels Present:

For the Resolution Professional : Shri Srinandan K

ORDER

Per: Manoj Kumar Dubey, Member (Technical)

1. The present petition is filed on 01.07.2021 by Mr. Jugraj Singh Bedi,

Resolution Professional of M/s Green Farm Tech Private Limited (hereinafter referred to as “Applicant”) under section 66(1) and (2) of the Insolvency and Bankruptcy Code,2016 (hereinafter referred to as the

Code), inter alia making the following prayers:

(a) to pass an order declaring that the Respondents to jointly and severally liable for business of the Applicant to be carried on with the intention of defrauding the Creditors of the Corporate Debtor or for fraudulent purpose, (b) to pass an order directing the Respondents to make payment of the entire amount of Rs. 38,00,00,000/- (Rs. Thirty Eight Crores Only) along with interest at 18% per annum from the date when transactions were made by the Respondents, and (c) any other Order or Orders that this Hon’ble Authority may deem fit and proper in the interest of justice and equity.

2. The facts of the case are mentioned below:

a) Vide order dated 20.02.2020, M3r. Jugraj Singh Bedi with Reg.No.

IBBI/IPA-001/IP-P00731/2017-2018/11208 was appointed as the Interim Resolution Professional to conduct the Corporate Insolvency Resolution Process (CIRP) in respect of the corporate debtor, namely M/s. Green Farm Tech Private Limited, the Applicant herein.

b) The Applicant after analysing the transactions in accordance with the provisions of the Code has arrived upon the conclusion that the avoidance transactions amounting to approximately Rs. 38 Crores (Rs. Thirty Eight Crores) have been transacted by the Respondents with the sole objective of defrauding the creditors of the Applicant. The Committee of Creditors (“CoC”) meeting held on 14.05.2021, one of the Agenda was to discuss the Transactional Auditor’s Report and it was resolved that the transactions of the Corporate Debtors are fit to fall under the scope of Sections 43, 45, 50 and 66 of the Code.

c) Since the Applicant has been appointed as the Resolution Professional, the Applicant has been diligent in conducting the necessary affairs and in holding the necessary CoC meetings.

d) It is submitted that there have been several occasions when the Respondents herein have been non-cooperative towards the Applicant and have tried to delay the process by making false promises to cooperate and then have refused to provide the necessary documents to the Applicant.

e) Further, the Applicant with the permission of the CoC had already filed C.A. No. 344/2020 under Section 19 of the Code read with Rule 11 of the NCLT, Rules, 2016 for direction against the Respondents to cooperate with the Applicant.

f) Thereafter, while the above mentioned application was pending for adjudication, the Applicant with requisite resolution passed by the CoC initiated a Transactional Audit to be conducted for the accounts of the Corporate Debtor as per Section