Case Law Details
Electroparts (India) Private Limited Vs Videocon Infinity Infrastructure Private Limited (NCLT Kolkata)
Order1 dated 18th July, 2022 of the NCLT in the matter of Infinity Infotech Parks Limited Vs. Electroparts (India) Private Limited & Anr. [I.A (IBC) No. 907/KB/2021 in C.P. (IB) No. 140/KB/2021]
The NCLT vide its order dated 18th July, 2022 terminated the corporate insolvency resolution process (CIRP) initiated against Videocon Infinity Infrastructure Private Limited (CD) and imposed a penalty of penalty of Rs.50 lakh on FC under section 65 of the Code.
I. Brief Background:
The order of CIRP in respect of the Corporate Debtor (CD) was passed by AA on 14.09.2021. An interlocutory application was filed by the shareholder of the CD praying that the Financial Creditor (FC) be held guilty of practicing and committing fraud on this Tribunal and as per section 65 of the Code, and penalty be imposed on the alleged FC and the CIRP be terminated. The applicant contended that the order of admission was obtained on the basis of fraudulent and manufactured documents for a fictitious and imaginary transaction in collusion with unknown third parties claiming to represent the CD without any authority, who fraudulently admitted liability though there was none. It was further submitted that the order of CIRP is a nullity, since the claimed date of default was 15.12.2020 which is hit by section 10A of the Code, which prohibits any application from being filed in respect of any date of default within the period from 25.3.2020 to 24.3.2021.
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