# In the matter of Jitesh Sanmukhlal Shah vs. Corrtech International Ltd & Ors.

> NCLAT judgment dated 2025-04-22. Citation: TCN-2025-NCLAT-00097. The appeal was filed against the order dated 27.09.2024 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 22 Apr 2025
- **Citation:** TCN-2025-NCLAT-00097
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jitesh-sanmukhlal-shah-vs-corrtech-international-ltd-ors-240fd78f

## Summary

### Background

The appeal was filed against the order dated 27.09.2024 passed by the National Company Law Tribunal, Ahmedabad, in CP 10/2023. The appellant alleged various illegalities committed by the respondent company, including illegal allotments of convertible debentures, illegal increase in authorized share capital, conversion from private to public entity without adherence to legal procedures, and illegal borrowing of funds based on fraudulent documentation. The appellant argued that the NCLT erred in dismissing the CP 10 of 2023 on the grounds of maintainability without issuing notice.

## Facts

The Respondent No.1 Company was incorporated on 08.06.1982. During 2019-20 the Appellant became a creditor of Respondent No. 1 Company due to non-payment by Respondent No.1 of an outstanding amount of Rs 6,06,60,510/-. The Respondent engaged in unnecessary correspondence with the Appellant during 2020-21, thereby disputing the claim with a sole intention of obstructing the Appellant from filing a petition under the Insolvency and Bankruptcy Code (IBC). In an attempt to hinder the Appellant, the Respondent not filed an arbitration petition in the year 2022, which is pending before the Ld. Arbitral Tribunal and despite multiple reminders the respondent did not file necessary documents in the matter. On 31.01.2023 Appellant filed an investigation petition under Section

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## Issues and analysis

### Issue 1: Whether the NCLT erred in dismissing the Company Petition filed by the appellant seeking …

**Ratio:** The power to order an investigation under Section 213 of the Companies Act, 2013, is

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**Reasoning:** The NCLAT found that the NCLT had considered the circumstances enumerated in sub-section

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**Interpretation:** Section 213 of the Companies Act, 2013, provides for investigation into a

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**Application:** The NCLAT applied the ratio to the facts of the case and found that the NCLT

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## Parties

- **Judges:** Yogesh K…; Ajai Das Me…
- **Appellants:** Jitesh Sanmukhlal…
- **Respondents:** Corrtech Internati…

## Timeline

- **1982-06-08 — Company Incor…**: The Respondent No.1…
- **2019-01-01 — Appellant Becomes…**: During 2019-20 the Appellant became a creditor of Respondent No. 1 Company due to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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