Nirmal Kanodia Vs Balajee Ingot India Private Limited (NCLT Kolkata)
NCLT Kolkata taking recourse to section 65 of the Insolvency and Bankruptcy Code directs closure of CIRP since initiation of CIRP was done fraudulently with malicious intent to escape from government dues and for wrongful gain. Accordingly, order admitting CIRP in respect of Corporate Debtor [Balajee ingot India Private Limited] closed.
Facts- This application has been preferred by Mr. Niraj Kumar Agrawal, the Resolution Professional of Balajee Ingot India Private Limited, under Section 30(6) read with Section 31 of the Insolvency and Bankruptcy Code, 2016, for brevity “I&B Code”, and Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, for brevity “CIRP Regulations”, for submission and final approval of the Resolution Plan submitted by the Resolution Applicant.
Conclusion- The CoC has been comprised with one unsecured financial creditor having admitted claim of Rs. 8 Lakh and significantly, the Government/ Statutory (GST/ Tax) Authorities have a significant claim which is to the tune of Rs. 19 Crore against the corporate debtor, and under the resolution plan, this huge amount has been satisfied only by a realisation amount of 4 Lakh, which leads a recovery in respect of such government dues at 0.21%. Thus, we are clear of view that the entire process has initiated by Mr. Kanodia for the wrongful gain and to evade the government liabilities as it is a settled position of law that after approval of the plan all the claim prior CIRP shall stand extinguished, and no further claim or proceedings shall sustain against the corporate debtor.
