2020 (2) TMI 1307 - AT - Insolvency and Bankruptcy

Presence of Directors personally on next date - deposit ofmoney withdrawn/transferred without approval of the IRP in the account from which it is withdrawn - HELD THAT - List the I.As and the Appeal in Orders category on 05th February, 2020.

Summary

Issues:
1. Modification of order dated 17th December, 2019 regarding presence of Directors and money withdrawal.
2. Details of amounts withdrawn without authorization from the IRP.
3. Undertaking by Directors for returning the withdrawn amounts.

Analysis:

1. The judgment addressed the issue of modification of an earlier order dated 17th December, 2019, where the Directors were directed to remain present personally and explain the unauthorized money withdrawals. The Counsel for the Appellant sought modification, claiming the order was initially a suggestion but was recorded as a direction. The Tribunal reviewed the order and concluded that no modification was necessary, disposing of the application.

2. The IRP presented additional details through I.A. No.516 of 2020 regarding unauthorized withdrawals totaling ?6,72,12,146, with partial returns of ?40 lakhs and ?50 lakhs by the Directors. The Tribunal noted the submissions and actions taken post its previous order, indicating a partial compliance by the Directors in returning the withdrawn amounts.

3. The Counsel for the Directors assured that the entire sum would be returned, with both Directors willing to provide an undertaking for the same within four weeks. The Tribunal directed the Directors to file the undertaking along with an affidavit confirming the repayment within the stipulated time frame, emphasizing the importance of compliance.

In conclusion, the judgment addressed the concerns raised by the parties regarding the modification of the order, provided detailed information on unauthorized withdrawals, and emphasized the necessity of the Directors fulfilling their undertaking to return the withdrawn amounts within the specified timeline. The Tribunal's directives aimed at ensuring compliance and accountability in the financial matters under consideration.