This case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal, Kochi Bench, Kerala) in IA No.38/KOB/2021 in IBA/04/KOB/2020. The Resolution Professional (RP) filed an application against the suspended Directors of the 'Corporate Debtor' seeking various reliefs, including directing the Respondents to make good the losses caused to the creditors, holding the Respondents personally liable for deliberate default, and declaring certain transactions as fraudulent. The Adjudicating Authority allowed the RP's application, leading to the present appeal.
The Corporate Debtor faced CIRP commencing on 20.11.2020, with Mr. K. Easwara Pillai appointed as the IRP. The RP discovered irregular business activities, dormant status of the Corporate Debtor during 2015-2016, destroyed or mutilated books of accounts, and failure to file statutory accounts with the RoC from 2015 onwards. Movable and current assets were traded to Respondent 3 and sold to settle liabilities outside the books. The RP filed I.A. 38/KOB/2021 seeking to direct Respondents to cover losses to creditors, hold them personally liable, and declare transactions fraudulent. The Adjudicating Authority allowed the application under Section 66 of the Code. The erstwhile management transferred land mortgage to Whispower Sales & Services Pvt. Ltd. on 31.07.2018,
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The Adjudicating Authority (National Company…
CIRP commenced…
This case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal, Kochi Bench, Kerala) in IA No.38/KOB/2021 in IBA/04/KOB/2020. The Resolution Professional (RP) filed an application against the suspended Directors of the 'Corporate Debtor' seeking various reliefs, including directing the Respondents to make good the losses caused to the creditors, holding the Respondents personally liable for deliberate default, and declaring certain transactions as fraudulent. The Adjudicating Authority allowed the RP's application, leading to the present appeal.
The Corporate Debtor faced CIRP commencing on 20.11.2020, with Mr. K. Easwara Pillai appointed as the IRP. The RP discovered irregular business activities, dormant status of the Corporate Debtor during 2015-2016, destroyed or mutilated books of accounts, and failure to file statutory accounts with the RoC from 2015 onwards. Movable and current assets were traded to Respondent 3 and sold to settle liabilities outside the books. The RP filed I.A. 38/KOB/2021 seeking to direct Respondents to cover losses to creditors, hold them personally liable, and declare transactions fraudulent. The Adjudicating Authority allowed the application under Section 66 of the Code. The erstwhile management transferred land mortgage to Whispower Sales & Services Pvt. Ltd. on 31.07.2018,
…The Adjudicating Authority (National Company…
CIRP commenced…