2018 (7) TMI 1895 - Tri - Companies Law

Bailable warrant of arrest - It appears that Tmt. Kumuda Aravamudha lyengar has been served with the notices by the Registry and the Applicant. Inspite of the service of notices there is no representation on behalf of Tmt. Kumuda Aravamudha lyengar. It appears that she is disobeying the orders of this Court deliberately - Held that - An amount of 70 lakhs and have been transferred during the moratorium to the personal account of Tmt. Kumuda Aravamudha lyengar from one of the accounts of the Corporate Debtor which has been opened with the Punjab National Bank Adyar Branch Chennai - Unless Tmt. Kumuda Aravamudha lyengar s presence is caused before this Authority it is not possible to prevent the ends of justice from being defeated and to recover the above said amount from her which is the money of the Corporate Debtor and taken away during the CIRP against the Corporate Debtor. In exercise of the powers conferred under Section 424 of the Companies Act 2013 r/w Section 94 of the Civil Procedure Code I hereby issue bailable warrant of arrest against Tmt. Kumuda Aravamudha lyengar for causing her personal appearance before this Bench on 27.07.2018. The Deputy Superintendent of Police Vandavasi Sub Division Tiruvannamalai District is directed to execute the bailable warrant of arrest against Tmt. Kumuda Aravamudha lyengar.

Summary

Issues:
- Failure of representation by Tmt. Kumuda Aravamudha lyengar despite being served with notices
- Transfer of funds during the moratorium period from the Corporate Debtor's account to Tmt. Kumuda Aravamudha lyengar's personal account
- Issuance of bailable warrant against Tmt. Kumuda Aravamudha lyengar for her personal appearance

Analysis:
The judgment by the National Company Law Tribunal, Chennai, addressed the issue of Tmt. Kumuda Aravamudha lyengar's failure to appear despite being served with notices. The Tribunal noted that despite being served with notices by both the Registry and the Applicant, Tmt. Kumuda Aravamudha lyengar did not represent herself, indicating a deliberate disobedience of court orders. Furthermore, it was highlighted that an amount of ?70 lakhs was transferred during the moratorium from one of the Corporate Debtor's accounts to Tmt. Kumuda Aravamudha lyengar's personal account at Punjab National Bank, Adyar Branch, Chennai. This transfer of funds raised concerns regarding the recovery of the said amount, which belonged to the Corporate Debtor and was taken during the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

In light of the circumstances and the need to prevent the ends of justice from being defeated, the Tribunal invoked its powers under Section 424 of the Companies Act, 2013, read with Section 94 of the Civil Procedure Code. Consequently, the Tribunal issued a bailable warrant of arrest against Tmt. Kumuda Aravamudha lyengar to ensure her personal appearance before the Bench on 27.07.2018. The Deputy Superintendent of Police, Vandavasi Sub Division, Tiruvannamalai District, was directed to execute the warrant. The warrant specified Tmt. Kumuda Aravamudha lyengar's address as Brahmin Street, Kilkolamedu, Vandavasi Taluk, Tiruvannamalai District, with a Pin Code of 604 408. Additionally, if Tmt. Kumuda Aravamudha lyengar offers for bail, she was required to provide a personal bond and one surety each for an amount of Rs.1 lakh. The Police Officer, upon satisfaction, could release her on bail with the condition to appear before the Bench on the next hearing date.

In conclusion, the judgment underscored the necessity of Tmt. Kumuda Aravamudha lyengar's presence before the Tribunal to ensure justice and recover the funds transferred during the CIRP. The issuance of the bailable warrant aimed to compel her appearance and facilitate the resolution of the matter concerning the misappropriated funds.