2021 (11) TMI 907 - Tri - Insolvency and Bankruptcy

Directions to complete verification of dues to be paid to the Applicants amongst others - HELD THAT - Learned counsel for the Respondent submitted that the aforesaid documents have already been handed over to the Applicant and that there is no any document left with the Liquidator to handover to the Applicant. It is also stated that this application has been filed as a delaying tactics of the liquidation process. All the documents sought for and available with the Liquidator have been handed over to the Applicant, nothing remains to be considered in this application. Hence, this application is rejected. Application dismissed.

Issues:
1. Failure to adhere to the tribunal's order and provide necessary documents as requested.
2. Request for specific documents related to financial information and payments.
3. Dispute regarding the provision of requested documents by the Liquidator.
4. Allegation of delaying tactics in the liquidation process.
5. Contempt proceedings sought due to non-compliance with document requests.

Issue 1: Failure to Adhere to Tribunal's Order and Provide Necessary Documents:
The applicant filed a petition under Rules 11 and 32 of the NCLT Rules, 2016, seeking action against the respondent for not complying with the tribunal's order and failing to provide essential documents as requested. The applicant specifically sought various supporting documents related to financial transactions and payments for specific years, including gratuity, provident fund, pension, and other details. The respondent was directed to provide these documents, but the applicant claimed that the documents provided were not in line with their requests, leading to further applications and disputes.

Issue 2: Request for Specific Documents:
The applicant requested specific documents related to financial information, payments, and transactions from the liquidator, post the initiation of the Corporate Insolvency Resolution Process (CIRP). Despite the applicant's repeated requests and payments made for the documents, there was a discrepancy in the documents provided by the liquidator. The tribunal directed the respondent to provide the requested documents, excluding certain minutes of meetings, which the respondent failed to do within the stipulated time frame.

Issue 3: Dispute Regarding Provision of Requested Documents:
The respondent argued that all requested documents had already been handed over to the applicant and that there were no documents left with the liquidator to provide. The respondent contended that the application was a delaying tactic in the liquidation process. However, the tribunal found discrepancies in the documents provided and rejected the application, stating that all documents had been handed over, rendering the application moot.

Issue 4: Allegation of Delaying Tactics:
The respondent claimed that the application was filed as a delaying tactic in the liquidation process, implying that the repeated requests for documents were unnecessary and causing delays. The tribunal considered this argument but ultimately rejected the application based on the assertion that all documents had been provided to the applicant.

Issue 5: Contempt Proceedings Sought for Non-Compliance:
The applicant sought contempt proceedings due to the respondent's failure to provide the requested documents within the specified time frame. However, since the tribunal found that all documents had been handed over, the prayer for initiating contempt proceedings was also rejected as it was deemed unnecessary in light of the documents being provided.

This judgment revolves around the failure to adhere to the tribunal's order and provide necessary documents, the dispute over specific document requests related to financial information, the allegation of delaying tactics in the liquidation process, and the request for contempt proceedings due to non-compliance. Despite the respondent's claim of having provided all documents, the tribunal found discrepancies in the documents provided, leading to the rejection of the application and the contempt proceedings prayer.

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