MA No. 2297/MB/C-I/2019

In

C.P (IB) No.527/MB/C-I/2018

An application under Section 66 of the Insolvency and Bankruptcy

Code, 2016

Filed by

Mr. Jitendrakumar Yadav

Liquidator of

Project Master Electricals Private Limited

…Applicant

Versus

Janak Barot and Ors.

…Respondents In the matter of

Andhra Bank

…Financial Creditor

Versus

Project Master Electricals Private Limited

… Corporate Debtor

Order Pronounced on: 12.04.2024

Coram:

Hon’ble Member (Judicial) : Justice V.G. Bisht (Retd.)

Hon’ble Member (Technical) : Mr. Prabhat Kumar

Appearances:

For the Applicant : Mr. Prakash Shinde, a/w Ms. Ruchita

Jain, Advocates

For the Respondents : None Appeared

ORDER Per: Prabhat Kumar, Member (Technical)

1. The Applicant has filed the present Application impugning certain transactions under Section 66 of the Insolvency and Bankruptcy Code, 2016 (‘Code’). The reliefs sought by the Applicant as are follows:

a. Pass an order and declare that sale of inventory to Respondent No. 5 be declared a transaction that was entered with an intent to defraud the creditors of the Corporate Debtor or for a fraudulent purpose, envisaged in Section 66 of the Code and the Adjudicating Authority by an order direct the Respondent No. 1 and 2 (Promoters/Directors) and Respondent No. 5 to jointly and severally make contribution to the assets of the Corporate Debtor and the inventory worth Rs. 12.53 crores be returned to the Corporate Debtor;

b. Pass and order directing Respondent No. 1, Respondent No. 2 Respondent No. 3 and Respondent No. 6 to Respondent No. 15 to reverse the money taken out from the Corporate Debtor’s account as the same were carried out with related or suspected related parties c. Pass an order directing the promoter/director to return the Mercedez Car shown in the books of accounts of the Corporate Debtor;

d. Pass an order directing the Accountant Amrita Jagaani (M. No.

168037) to Co-operate with the Liquidator in conducting the Liquidation Process of the Corporate Debtor e. Pass an order directing Respondents No. 1, 2, 3 and 16 to allow the Applicant to get access to the office of the Corporate Debtor;

f. Pass an order directing Respondent No. I to 3 to give address of M.A enterprises to the Applicant in order to enable the Applicant to recover the machineries sent for repairs;

g. Pass an order directing Respondents Nos 1 to 3 to provide details on the claims to be filed before the insurance company Bajaj Allianz General Insurance Co. Ltd. in order to enable the Applicant to file a claim before the insurance company.

h. Pending the hearing and final disposal of the present Application, this Hon’ble Tribunal be pleased to restrain the Respondents from disposing off their personal assets till discharge of their liabilities as ordered by this Tribunal;

i. For such further and other reliefs as this Hon’ble Tribunal may deem fit in the facts, nature and circumstances of the present case.

2. CIRP commenced against the Corporate Debtor vide order dated 10.09.2018.

Subsequently, the Corporate Debtor was Liquidated vide order dated 09.05.2019 and this Tribunal appointed Jitendra Kumar Yadav as the Liquidator of the Corporate Debtor.

3. The Applicant appointed H.M. Shah and Co as the forensic auditor to conduct forensic audit of the Corporate Debtor. The Auditor in the Forensic Audit Report dated 23.04.2019 reported that the Corporate Debtor has entered into several transactions under Section 66 of the Code.

4. The Applicant submits that inventory worth Rs. 12.53 Crores was sold to the Respondent No. 5 on credit basis and no realization was made against the said sale till date. Further, it is submitted that the goods were sold despite the Corporate Debtor’s account turning NPA. The Applicant submits that the goods sold were hypothecated in favor of the Financial Creditor and were sold to keep the assets of the Corporate Debtor beyond the reach of the Financial Creditors.

5. It is submitted that the Corporate Debtor has entered into sales and purchase transactions with Respondents No. 6 to 15 al