# In the matter of Shri Baiju Trading and Investment Private Limited vs. Arihant Nenawati & Ors. Company Appeal (AT) (Ins.) No. 699 of 2021

> NCLAT judgment dated 2023-03-29. Citation: TCN-2023-NCLAT-00828. The appeal was filed against the order dated 29.01.2021 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 29 Mar 2023
- **Citation:** TCN-2023-NCLAT-00828
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-mumbai-bench-i/shri-baiju-trading-and-investment-private-limited-vs-arihant-nenawati-ors-compan-58e6fc62

## Summary

### Background

The appeal was filed against the order dated 29.01.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) in I.A. No. 1125 of 2020 in C.P. No. 2556/MB/2019, which allowed an application filed under Section 66 r/w Section 26 of the Insolvency & Bankruptcy Code, 2016.

## Facts

Raksha Bullion filed an application under Section 9 of the I&B Code against Royal Refinery Pvt. Ltd. due to a default of Rs. 4,90,01,183.

CIRP was initiated against Royal Refinery Pvt. Ltd. on 13.11.2019, and Mr. Nandkishor Vishnupant Deshpande was appointed as Interim Resolution Professional.

The Adjudicating Authority ordered the liquidation of Royal Refinery Pvt. Ltd. on 16.04.2021.

Shri Baiju Trading and Investment Private Limited, the appellant, is engaged in the business of Non-Banking Financial Services and took a loan/financial assistance from the Corporate Debtor.

The appellant allegedly owes Rs. 41.03 crores to the Corporate Debtor, which was written off.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in allowing the application under Section 66 of the …

**Ratio:** Section 66 of the I&B Code allows the Adjudicating Authority to pass orders if it

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**Reasoning:** The Appellate Tribunal found that the transactions were unusual, contradictory statements

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**Interpretation:** Section 66 is interpreted to allow for the recovery of assets from those who

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**Application:** The Appellate Tribunal upheld the Adjudicating Authority's order, finding that

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## Parties

- **Judges:** Naresh Sa…; Rakesh Kuma…
- **Appellants:** Baiju Trading and…; Nandkishor…
- **Respondents:** Royal Refinery…; Arihant Ne…; +2 more
- **Other parties:** Raksha Bu…
- **Advocates:** Sanchar…; Kshitiz…; +4 more

## Timeline

- **2021-01-29 — Order Da…**: Order passed by the Adjudicating Authority/National Company Law Tribunal, Mumbai Bench in…
- **2019-11-13 — CIRP Init…**: Corporate Insolvency Resolution Process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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