Jitesh Sanmukhlal Shah Vs Corrtech International Ltd & Ors (NCLAT Delhi)
The appeal was filed against the order dated 27.09.2024 passed by the NCLT, Ahmedabad in CP No. 10/2023. The appellant alleged that he had become a creditor of Respondent No. 1 Company due to non-payment of an outstanding amount of ₹6,06,60,510. He further alleged that the company had engaged in correspondence disputing his claim and had initiated arbitration proceedings in 2022. On 31.01.2023, the appellant filed a petition under Section 213(b) of the Companies Act, 2013, alleging various irregularities, including allotment of convertible debentures at a discount, increase in authorised share capital, issues concerning statutory auditors, conversion of the company from private to public, and borrowings allegedly based on fraudulent documentation.
The appellant contended before the NCLAT that the NCLT had dismissed the Company Petition on maintainability without issuing notice and had wrongly held that he was not eligible to file the petition. He relied upon M/s RS India Wind Energy P Ltd Vs PTC India Financial Services Ltd (2016 SCC OnLine NCLAT 10) and submitted that sufficient allegations had been made to warrant an investigation under Section 213(b). The NCLAT examined Section 213, under which the Tribunal may order an investigation where circumstances suggest fraudulent or unlawful conduct, fraud, misfeasance or other misconduct, or failure to provide members with relevant information.
