Praful Nanji Satra Vs Vaishali Arun Patrikar (NCLT Mumbai)
NCLT Mumbai held that as per section 32A of the Insolvency Bankruptcy Code, 2016, the Corporate Debtor shall not be held liable for offences prior to the commencement of Corporate Insolvency Resolution Process (CIRP).
Facts- The Applicant has filed the present Application seeking intervention in the Plan approval application seeking approval of Resolution Plan submitted by a consortium of MJ Shah Enterprises, MJ Shah Realtors LLP and Centrio Lifespaces Limited (Formerly known as Satra Realty and Builders Limited) (collectively hereinafter referred to as “MJS Group”), on the ground that the Resolution plan is illegal and contrary to law and there is a deliberate attempt to sale/transfer the assets of Corporate Debtor at substantially low value and without valuation that affects the interest of Applicant who is also being prosecuted as guarantor for various facilities availed by the Corporate Debtor.
Conclusion- By virtue of Section 32A of the Code, the Corporate Debtor shall not be held liable for offences prior to the commencement of Corporate Insolvency Resolution Process.
Held that after the approval of the Resolution Plan no action can be taken against the assets of the Corporate Debtor in relation to an offence committed prior to the commencement of Corporate Insolvency Resolution Process. Accordingly, the Respondent herein is directed to lift the attachment on the bank accounts of the Corporate Debtor.
