2019] 205
fire
insurance
survey
report
was
merely
Rs.
117. 18
lakhs
which
included
damage^
to
building,
plant
&
machinery,
electrical
goods,
furnitures
&
fix
tures -
etc.
n
Therefore,
the
applicant
stated
that
due
to
gross
negligence
and
wilful
conspiracy^
of
the
respondent,
the
overall
loss
due
to
fire
incident,
caused
to
the^
lenders
being
SBI
was
approx.
Rs.
1 , 141
lakhs
as
claimed
in
the
audited
financial^
statements
ought
to
be
vested
back
to
the
lenders.n
The
next
contention
of
the
applicant
was
that
the
corporate
debtor
had
shown^
inflated
debtors
and
incorrect
Book
Debts
and
stock
statements
filed^
by
the
corporate
debtor.n
It
was
stated
that
certain
fraudulent
transactions
with
related
parties,
had
also^
taken
place.n
The
applicant
further
submitted
that
fictitious
sales
had
been
noticed
to
third^
party
for
obtaining
inflated
bill
discounting
facility
from
SBI.HELD
n
There
are
no
submissions
produced
on
record
by
the
respondents.
The
re
spondents -
despite
service
of
notice
by
the
applicant
for
the
Miscellaneous
Application^
in
hand,
chose
neither
to
file
any
reply
nor
to
appear
before
the
Bench.^
Affidavit
of
service
has
been
produced
on
record
by
the
applicant.
It
is^
informed
by
the
applicant
that
‘A’
was
present
on
the
hearing
of
4 - 6 - 2018
but^
he
chose
to
stay
silent
on
this
application.
Hence,
it
can
be
said
that
the
respondents^
have
nothing
to
say
in
their
defence.
The
applicant
has
made
out^
its
case
that
the
respondents
were
indulged
in
preferential,
fraudulent
and^
undervalued
transactions.
The
conduct
of
the
respondents
since
the
initiation^
of
corporate
insolvency
and
resolution
process
was
unacceptable
and^
not
satisfactory
to
the
bench.
The
Erstwhile
IRP
also
reported
and
recorded^
the
same
in
the
1 st
CoC
meeting
about
the
non-co-operation
by
the^
Respondents/Promoters/Directors.
[Para
31 ]n
Hence,
in
respect
of
the
prayer
of
the
applicant
seeking
co-operation
from
ex-promoters/directors^
of
the
corporate
debtor,
an
order
is
passed
under
section^
19 ( 3 )
on
the
ex-promoters/directors
to
comply
with
the
instructions
of^
the
liquidator
and
to
co-operate
with
him
in
collection
of
information
and
management^
of
the
corporate
debtor
and
now
in
completing
the
liquidation
proceedings^
as
well.
[Para
32 ]n
Hence,
the
transaction
which
was
undervalued
is
not
done
in
the
ordi
nary -
course
of
business
of
the
corporate
debtor
as
assets
(stock)
has
been
transferred^
and
no
money/payment
has
been
received
in
respect
of
the
same.^
Hence,
exercising
jurisdiction
under
section
48 ( 1 )(
c),
it
is
ordered
to
Respondent^
No.
7
to
pay
an
amount
of
Rs.
3 , 31 , 56 , 980 /-
in
respect
of
benefit
received,^
to
the
liquidator.
[Para
34 ]n
The
transactions
of
giving
money
to
various
lenders,
inflated
book
debts
and^
stock
statements,
fraudulent
transactions
with
related
parties
and
ficRam Ratan Kanoongo
v.
Sunil Kathuria (NCLT - Mum.)