19 (3)

Power of NCLT to impose a penalty u/s 70 of IBC on non-cooperation by Suspended Directors u/s 19 of IBC – Mr. Rahul Gupta Vs. Chandra Prakash (Erstwhile RP) Now Liquidator of Gem Batteries Pvt. Ltd. – NCLAT New Delhi

In this case, NCLT imposed a cost of Rs. 10,00,000/- each on Members of the Suspended Board of Directors under Section 70 of the Code on failed to extend cooperation to the Liquidator.
Hon’ble NCLAT, after careful perusal of six judgments on earlier occasions, concluded that clearly the Adjudicating Authority erred in passing the Impugned Order overlooking the law of the land (the Code) and also ignoring the precedent cases settled by this Appellate Tribunal, as discussed in preceding paragraphs.

Power of NCLT to impose a penalty u/s 70 of IBC on non-cooperation by Suspended Directors u/s 19 of IBC – Mr. Rahul Gupta Vs. Chandra Prakash (Erstwhile RP) Now Liquidator of Gem Batteries Pvt. Ltd. – NCLAT New Delhi Read Post »

Any prosecution under Section 70 of the IBC can be initiated only in accordance with the procedure as provided under Section 236(2) and not by the Resolution Professional – Vivek Prakash (Suspended Director & MD) Vs. Dinesh Kr. Gupta, Liquidator of M/s Jarvis Infratech Pvt. Ltd. & Anr. – NCLAT New Delhi

NCLAT holds that prosecution under Section 70 has to be on complaint filed by the Board or Central Government or person authorized by the Central Government. Further, clarify that any prosecution under Section 70 can be initiated only in accordance with the procedure as provided under Section 236(2) and not by the Resolution Professional. However, with regard to any other offences including the offences under Indian Penal Code, if any complaint is filed by the Resolution Professional before a Police Station that is separate issue and has no concern with the offences under Section 70 and the order impugned shall have no bearing on such proceedings by a Police Station and they are independent proceedings which has to be considered and decided in accordance with law.

Any prosecution under Section 70 of the IBC can be initiated only in accordance with the procedure as provided under Section 236(2) and not by the Resolution Professional – Vivek Prakash (Suspended Director & MD) Vs. Dinesh Kr. Gupta, Liquidator of M/s Jarvis Infratech Pvt. Ltd. & Anr. – NCLAT New Delhi Read Post »

On this ground that Director had resigned from the directorship just before the commencement of CIRP is not a good reason to grant exemption from non-submission of requisite details, if any, in his possession – Mr. Ashwini Mehra, RP of M/s Educomp Infrastructure & School Management Ltd. Vs. Mr. Vinod Kumar Dandona, Suspended Director & Ors. – NCLT Chandigarh Bench

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On this ground that Director had resigned from the directorship just before the commencement of CIRP is not a good reason to grant exemption from non-submission of requisite details, if any, in his possession – Mr. Ashwini Mehra, RP of M/s Educomp Infrastructure & School Management Ltd. Vs. Mr. Vinod Kumar Dandona, Suspended Director & Ors. – NCLT Chandigarh Bench Read Post »

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