KVR Industries Private Limited Vs P. P. Bafna Ventures Private Limited (NCLAT Delhi)
The appeal was filed by the Corporate Debtor challenging the order dated 08.06.2020 passed by the Adjudicating Authority (NCLT, Amaravati Bench) in several interlocutory applications arising from a Section 7 application under the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor challenged, among other things, the Adjudicating Authority’s decision to restore the Section 7 company petition, dismiss applications seeking criminal action relating to alleged forged signatures, and dispose of other connected applications.
The Financial Creditor had originally filed a Section 7 application seeking initiation of the Corporate Insolvency Resolution Process (CIRP). During its pendency, a separate Section 9 application filed by an Operational Creditor was admitted, leading the Adjudicating Authority to dispose of the Financial Creditor’s petition and direct it to submit its claim before the Interim Resolution Professional. Subsequently, the Section 9 proceedings were settled and withdrawn. The Financial Creditor thereafter filed applications seeking restoration of its Section 7 petition and restoration of an earlier interim order.
The Corporate Debtor objected to these restoration applications, alleging that the signatures of the Financial Creditor’s authorised signatory on the applications were forged. It filed applications under Section 340 read with Section 195(1)(b)(i) of the Code of Criminal Procedure and Section 193 of the Indian Penal Code seeking initiation of criminal proceedings, preliminary inquiry, and cross-examination of the authorised signatory. Another application was filed to place on record a forensic examination report concerning the disputed signatures.
