# In the matter of Mr. K. N. Narayanan Namboodiripad Vs. K. Parameswaran Nair Erstwhile RP,Compant Appeal (AT)(CH)(Ins)No. 409 of 2022

> NCLAT judgment dated 2022-12-05. Citation: TCN-2022-NCLAT-00052. This Company Appeal (AT)(CH)(Ins) No.409/2022 was filed by the Appellants, who are…

- **Court:** NCLAT
- **Order date:** 5 Dec 2022
- **Citation:** TCN-2022-NCLAT-00052
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-k-n-narayanan-namboodiripad-vs-k-parameswaran-nair-erstwhile-rpcompant-appeal-9f300ac1

## Summary

### Background

This Company Appeal (AT)(CH)(Ins) No.409/2022 was filed by the Appellants, who are dissatisfied with the 'Impugned Order' dated 02.06.2022 passed by the 'Adjudicating Authority' (National Company Law Tribunal, Kochi Bench, Kerala) in IA(IBC)/196/KOB/2021 in IBA/13/KOB/2020. The Adjudicating Authority held the Appellants/Respondents personally liable for fraudulent transactions and directed them to pay Rs. 2,94,77,269/- with interest. The appeal challenges this order, arguing that the Adjudicating Authority failed to appreciate statutory provisions, did not consider facts on record, and passed the order without application of mind. The Appellants contend that the directions should have been sought under Section 66(1) of the I&B Code, 2016, and that the Adjudicating

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## Facts

The case involves allegations of fraudulent transactions by the directors of Sree Bhadra Parks and Resorts Limited. A forensic audit revealed several questionable transactions, including agreements for the sale of mortgaged land, suspected diversion of funds accounted as advance paid for land purchase, and share purchase agreements with M/s. Sri Ramani Resorts and Hotels Pvt. Ltd and M/s. Basel Products India Private Limited to sell 100% shares of the Company. The forensic auditor concluded that these transactions were deliberately entered into by the Managing Director to keep assets beyond the reach of the Secured Creditor (Federal Bank). The Adjudicating Authority (NCLT, Kochi Bench) held the Appellants/Respondents personally liable for these fraudulent transactions,

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## Parties

- **Judges:** M. Venu…; Naresh Sa…
- **Appellants:** K. N. Narayanan…
- **Respondents:** M/s Sree Bhadra…; K. Subram…

## Timeline

- **2022-06-02 — Impugned…**: The 'Adjudicating Authority' (National Company Law Tribunal, Kochi Bench, Kerala) passed…
- **2021-11-09 — Filing of IA(IBC)/196/KO…**: IA(IBC)/196/KOB/2021 in IBA/13/KOB/2020 was filed on 09.11.2021, within the permissible…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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