O R D E R

(Hybrid Mode)

[Per: Justice Mohd. Faiz Alam Khan, Member (Judicial)]

Instant appeal has been filed by the appellants, who are suspended directors of the corporate debtor (CD), under Section 61 of the Insolvency and Bankruptcy Code, 2016 (Code), against the judgment/order dated 23 February 2024 (impugned order) passed by the National Company Law Tribunal, Mumbai Bench (Adjudicating Authority) in an application filed under Section 60(5) read with Sections 35, 36, 66, 68 to 72 of the Code, being IA No. 1568 of 2020 in CP(IB) No. 1267 of 2017, whereby the application filed by the liquidator has been partly allowed and the appellants have been directed to contribute, jointly or severally, an amount of ₹437.02 lakhs to the corporate debtor.

2. Brief facts necessary for the disposal of this appeal are that Respondent No. 2, who is the corporate debtor, was subjected to CIRP vide order passed by the Ld. Adjudicating Authority on the petition filed by the Punjab National Bank under Section 7 of the Code. Respondent No. 1, namely Mr. Manish Baldeva, was appointed as the Interim Resolution Professional (IRP) who was later on confirmed as the resolution professional (RP) and subsequently as the liquidator of the CD vide order dated 20/07/2018.

3. It is also reflected that the liquidator, in exercise of powers provided under Section 35 of the Code, took into his custody and control various assets and properties of the corporate debtor and thereafter took a decision to investigate the financial affairs of the corporate debtor under Section 35(1) of the Code and by letter dated 25th July 2019, the liquidator appointed ADB and Associates, Chartered Accountants, to conduct the forensic audit of the corporate debtor with respect to the present status of the assets and genuineness of certain transactions as per the details provided by the erstwhile management.

4. It is further reflected that the forensic auditor conducted the forensic audit and an investigation into the affairs of the CD and submitted their report on 04/10/2019 and the liquidator, after receiving the forensic audit report filed the IA No. 1568 of 2020, with regard to which the impugned order has been passed by the Ld. Adjudicating Authority with the following prayers;

“24. The Applicant/Liquidator therefore prays this Hon’ble Tribunal as follows:

a. To pass such Order or Orders directing the ex-Directors / promoters of the Corporate Debtor to cooperate with the Applicant - Liquidator and provide information, books of accounts, ledgers, Bank statements and other documents as required by the Liquidator as per the list annexed hereto and marked as Exhibit and any further and other documents as may be required by the Liquidator from time to time.

b. That this Hon’ble Tribunal may be pleased to declare that the promoters / ex-directors of the Corporate Debtor have indulged in transactions to defraud its creditors and are liable for misfeasance and other offences under the Code.

c. That this Hon’ble Tribunal may be pleased to direct the ex-directors/promoters to pay a sum of Rs. 103.15 Lakhs in respect of cash vouchers to the Liquidator as set out in Exhibit A (Report)

d. That this Hon’ble Tribunal may be pleased to direct the Respondents Nos. 1-3 i.e. ex-directors/promoters, Respondent No. 4 i.e. Linkson Coal and Minerals Private Limited and Respondent Nos. 5-8 i.e. Vendors and any other person’s to whom the consideration paid in respect of immovable properties i.e. Gopal Complex and Megh. Complex has been diverted to make a contribution and jointly and/or severally pay to the Liquidator a Sum of Rs. 527.06 Lakhs siphoned off from the Corporate Debtor as set out in the exhibit agreement.

e. That this Hon’ble Tribunal may be pleased to direct the Respondent Nos. 1-3 or by Respondents 5-8 to furnish and submit copies of all. License / Tenancy / Lease Agreements executed by them to the Applicant and pay all the rents in respect of the immovable