##PAGE1##

Section 66(1) and Section 66(2) r/w Section 60(5) of the IBC, 2016 GANESH VENKATA SIVA RAMA KRISHNA REMANI (Resolution Professional of Barracks Retail India Private Limited)

...Applicant V/s PUNEET P. BHATIA & ANR.

…Respondent In the matter of COMPANY PETITION NO. CP (IB)/280(MB) 2023 ASREC (INDIA) LIMITED …Petitioner V/s BARRACKS RETAIL INDIA PVT. LTD.

…Respondent Order delivered on: 27.10.2026 Coram:

Shri Prabhat Kumar Shri Sushil Mahadeorao Kochey Hon’ble Member (Technical) Hon’ble Member (Judicial)

COMPANY PETITION NO. CP (IB)/280(MB) 2023 Appearances:

For the Applicant : Adv. Devarajan Raman For the Respondent : Attendance not marked

ORDER

1. The present Application IA 2427 of 2025 is filed by Resolution Professional (“RP”), under Section 66(1) and 66(2) read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) in the Corporate Insolvency Resolution Process of Barracks Retail (India) Private Ltd. (“Corporate Debtor”). After approval of the resolution plan on 4.11.2025 in the case, the Financial Creditor, namely Asrec (India) Limited (“Asrec”), was substituted to prosecute the application further in terms of the approved resolution plan. The RP as well as Asrec are referred to as Applicant hereinafter. The Applicant has made the following prayers:-

a) That this Hon'ble Tribunal be pleased to direct the Respondents to jointly or severely make contribution of Rs.2660.75 Lacs to the assets of the CD as transactions in para-Nos.7, 9, 10, and 12 are fraudulent in nature;

b) That this Hon'ble Tribunal may be pleased to direct the Respondents to jointly or severely make such contribution to the assets of the CD as it may deem fit u/ss.66 (1) and 66 (2) of the I & B Code, 2016 by exercising the powers vested in the tribunal under section 67 of the Code.

c) That this Hon'ble Tribunal may be pleased to pass such further orders u/s.67 of the Code for giving effect to the order passed u/ss.66 (1) and 66 (2) of the Code;

d) Any other order or further direction that this Hon'ble Tribunal may deem fit and proper.

2. A company petition CP (IB) No. 280/MB/2023, filed by the Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiation of CIRP against the Corporate Debtor, was admitted by the Adjudicating Authority COMPANY PETITION NO. CP (IB)/280(MB) 2023 on 09.01.2024, initiating CIRP and appointing the Applicant as the Interim Resolution Professional (IRP). After the Hon'ble NCLAT dismissed the appeal against the admission of the Corporate Debtor into CIRP, the Applicant was confirmed as the Resolution Professional on 31.12.2024 at the 1st meeting of the Coc. The Resolution Professional appointed M/s. Maheshwari Rander &

Associates to conduct the transaction undertaken by the Suspended Directors.

3. This Tribunal passed an order dated 09.01.2024 initiating the Corporate Insolvency Resolution Process of the Corporate Debtor Barracks Retail India Pvt. Limited and appointed the applicant as the Interim Resolution Professional to conduct the CIRP in accordance with the provisions of the Code.

4. The present application has been filed by the Applicant - in relation to the Fraudulent and Wrongful transactions against the suspended directors of Barracks Retail India Pvt. Ltd. The Resolution Professional appointed M/s. Maheshwari Rander & Associates to conduct a transaction audit to unearth avoidance transactions undertaken by the Suspended Directors. The auditors have submitted a transaction audit report dated 21.04.2025, identifying the transactions as fraudulent; the details of these transactions are provided in the application.

5. The Applicant has impugned the following transactions :

a. Rs. 23.15 Lakhs withdrawn by respondent no. 1 during FY 2023-24 and not refunded, impugned u/s 66 of the Code;

b. Write-off of Stocks worth Rs.369.94 Lacs in FY 2023-24, impugned u/s

66 of the Code;

c. Write off of Trade receivables worth Rs.2225.16 Lacs in FY 2023-24, impugned u/s 66 of the Code