# In the matter of Mr T.S. Murali & Anr. Vs. Liquidator of Helpline Hospitality Pvt Ltd. Company Appeal (AT)(Insolvency) No.234 of 2021

> NCLAT judgment dated 2022-10-18. Citation: TCN-2022-NCLAT-00150. This case involves an appeal against an order passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 18 Oct 2022
- **Citation:** TCN-2022-NCLAT-00150
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-ts-murali-anr-vs-liquidator-of-helpline-hospitality-pvt-ltd-company-appeal-5ee0a249

## Summary

### Background

This case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), New Delhi, regarding the attachment and proposed auction of a property. The appellants, Mr. T.S. Murali and Mrs. Rema Murali, are ex-directors of the Corporate Debtor, Helpline Hospitality Pvt Ltd. The liquidator filed an application seeking the transfer of a property registered in the name of Mr. Murali to the Corporate Debtor, alleging fraudulent diversion of funds. The NCLT allowed the application, leading to the attachment of the property. The appellants then filed a review petition, which was dismissed. They then filed an appeal before the NCLAT.

## Facts

Mr. T.S. Murali and Mrs. Rema Murali, ex-directors of Helpline Hospitality Pvt Ltd, are appellants in this case. An application under Section 9 of the IBC was filed on 2017-03-21 for initiation of CIRP against Helpline Hospitality Pvt Ltd, which was admitted on 2017-04-24. An Insolvency Resolution Professional was appointed on 2017-07-18. Liquidation proceedings were initiated under Section 33 of the IBC. A forensic audit revealed that the company and its directors were liable for prosecution under the IPC, Companies Act, 2013, and other laws for fraudulent diversion of funds. A loan of Rs.36,59,250 was taken on 2004-04-30 for a tenure of 104 months, ending on 2013-07-22, for assets located at Plot No.G-158, Sector 41, Noida. The asset was registered in the name of

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## Issues and analysis

### Issue 1: Whether the NCLT had the jurisdiction to order the attachment and auction of the property …

**Ratio:** Section 66 of the Insolvency and Bankruptcy Code (IBC) allows the Adjudicating Authority

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**Reasoning:** The NCLAT reasoned that the forensic audit report revealed that the ex-directors had

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**Interpretation:** Section 66 of the IBC provides a mechanism to address fraudulent or wrongful

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**Application:** The NCLAT applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Rakesh…; Ashok Kumar…
- **Appellants:** Mr T.S. M…
- **Respondents:** Helpline Hospitali…; Liquidator of…

## Timeline

- **2017-03-21 — Application under…**: An application under Section 9 of the IBC was filed for initiation of CIRP against M/s…
- **2017-04-24 — Application a…**: The application for…

## 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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