M/s. Neesa Infrastructure Limited vs State Bank of India (Ahmedabad NCLT)
Summary: The National Company Law Tribunal, Ahmedabad Bench, in M/s. Neesa Infrastructure Limited Vs State Bank of India, dismissed a corporate insolvency resolution process (CIRP) application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, holding that the petition lacked valid corporate authorisation and did not satisfy the statutory requirements. Sanjay Gupta had filed the application claiming to be the authorised signatory of Neesa Infrastructure Limited. Several financial creditors, including SIDBI, Indian Overseas Bank and Central Bank of India, opposed the application, alleging suppression of material facts, irregularities in corporate records and an attempt to obstruct ongoing debt recovery proceedings. State Bank of India, however, raised no objection. The objecting banks highlighted discrepancies concerning the company’s directors, promoters and shareholding, particularly a special power of attorney executed by Neelu Gupta in favour of Sanjay Gupta. Upon examining the records, the Tribunal found that Neelu Gupta was not a director authorised to execute the power of attorney and that no valid Board resolution authorised Sanjay Gupta to institute the proceedings. The Tribunal also noted inconsistent disclosures of Neelu Gupta’s shareholding, recording that the application relied upon fabricated documents. Further, the application lacked the shareholders’ special resolution required under Section 10(3)(c) of the Code. The Tribunal observed that the applicant sought to obtain the benefit of an insolvency moratorium while banks were pursuing recovery proceedings under the applicable debt recovery and SARFAESI laws. Considering these deficiencies, the Tribunal held that the application was not maintainable and dismissed Company Petition CP (IB) No. 61 of 2018 without imposing costs.
