2022 (6) TMI 1187 - Tri - Insolvency and Bankruptcy

Seeking direction to conduct a forensic legal audit by a professionally qualified expert and appointment of the same - seeking direction on the Respondent No. 1 Respondent No. 2 to cooperate with the Applicant and to hand over him all the books of accounts, documents, legal papers concerning the past and present affairs of the Corporate Debtor - seeking unhindered and unobstructed access of all the properties of the Corporate Debtor by the Applicant - verification of whole process of Appraisal, Sanction, Documentation, Disbursement and monitoring of the Credit Facilities granted to the Corporate Debtor - HELD THAT - Since there has been no co-operation from the directors in spite of various orders dated 04 March, 2020, 18 November, 2021, 17 December, 2021 and 09 February, 2022 and bailable warrant dated 11 March, 2022 and 28 March, 2022 passed by this Adjudicating Authority, which were to be recalled by executing a personal bond of Rs. 1,00,000/- each upon production. This Adjudicating Authority had time and again directed the police authorities to cause production of two directors Mr. Pankaj Kumar Singh and Mr. Manoj Kumar Singh in the court but the same was not fruitful, in so far Mr. Manoj Kumar Singh is concerned - It is noticed from the report of the police authorities that Mr. Manoj Kumar Singh's whereabouts are not traceable. This is not acceptable to the Court, considering the vast resources available to the police. In today's day and age, it is highly improbably that a person can just disappear off the face of the earth. Mr. Sudeep Sarkar, IPS, Deputy Commissioner of Police, South East Division is directed to be present before this Court on the next date of hearing in case Mr. Manoj Kumar Singh is not traced and brought to court. Time is of the essence since the entire liquidation process, which is to be completed within a defined time-frame under the Insolvency Bankruptcy Code, 2016, is required to be completed. Application disposed off.

Summary

Issues:
Miscellaneous Application under sections 19(2) and 34(3) of the Insolvency and Bankruptcy Code, 2016 seeking reliefs related to forensic audit, cooperation from respondents, access to corporate debtor's properties, verification of credit facilities, and nullification of certain filings and resolutions.

Analysis:

1. The Applicant, appointed as the Liquidator, faced non-cooperation from the directors and stakeholders despite various orders. The directors failed to comply with court orders and warrants, hindering the liquidation process.

2. The court directed the police to produce the directors, but one director's whereabouts were untraceable. The court expressed dissatisfaction with the police's inability to locate the missing director, emphasizing the urgency of completing the liquidation process within the stipulated timeframe.

3. In response to the director's disappearance, the court directed a senior police official to appear in court if the missing director was not found. The court stressed the importance of timely completion of the liquidation process as mandated by the Insolvency & Bankruptcy Code, 2016.

Orders:

1. The court directed a senior police official to appear in court if the missing director was not located promptly. The urgency of completing the liquidation process within the specified timeframe was highlighted.

2. A copy of the order was to be communicated to the Advocate General for the State of West Bengal and the Public Prosecutor of the High Court at Calcutta for awareness and necessary action.

3. The matter was scheduled for further consideration on a specified date, emphasizing the importance of progressing with the main case.