2020 (2) TMI 1600 - Tri - Insolvency and Bankruptcy

Reopening of case for certain clarifications - HELD THAT - A formal notice be issued under Section 7(5) of the Insolvency Bankruptcy Code to the Petitioner to reply the queries/clarifications. The clarifications are stated as under 1. The proof of disbursement of amount ₹ 2.50 Lakhs and 50.00 Lakhs by the proprietor to the Corporate Debtor as stated in the Petition. 2. No agreement for giving loan or Bank account showing disbursements of the amount are not available on record. The same is required to be submitted. 3. There is no bank statement showing the receipt of any amount from Respondent also. Proof of receipt of such amount as claimed to be produced. 4. Balance sheet of the Respondent and the Petitioner are not enclosed to prove that these transactions/outstandings have shown in the books of account. Copy of the balance sheet is to be submitted. 5. Whether the Petitioner is a money lender as submitted by the Respondent. Any proof thereof to be provided. 6. One cheque is returned and purpose for which the cheque was issued is not on record. If any letter is available to this effect may be produced. The Petitioner is to file reply within stipulated period - List the matter on 04.03.2020.

Summary

Issues:
Reopening of the case for clarifications related to the Insolvency & Bankruptcy Code.

Analysis:
The Tribunal has ordered the reopening of the case for certain clarifications that are crucial for the disposal of the present Insolvency & Bankruptcy petition. A formal notice is to be issued under Section 7(5) of the Insolvency & Bankruptcy Code to the Petitioner, requiring responses to specific queries and clarifications. The clarifications include proof of disbursement of amounts by the proprietor to the Corporate Debtor, the absence of loan agreements or bank account records for disbursements, the lack of bank statements showing receipt of amounts from the Respondent, the necessity of submitting balance sheets of both the Respondent and the Petitioner to verify transactions, clarification on whether the Petitioner is a money lender, and the need for any available documentation regarding a returned cheque and its purpose. The Petitioner is directed to provide these clarifications within seven days for the Court's review, with a deadline to file a reply within the stipulated period. The matter is scheduled to be listed on 04.03.2020 for further proceedings.