# In the matter of Niraj Rathore vs. Partha Sarathy Sarkar & Anr.

> NCLAT judgment dated 2024-05-13. Citation: TCN-2024-NCLAT-00443. The appeal was filed by the Erstwhile Director of Modern Syntex (India) Limited (Corporate…

- **Court:** NCLAT
- **Order date:** 13 May 2024
- **Citation:** TCN-2024-NCLAT-00443
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/niraj-rathore-vs-partha-sarathy-sarkar-anr-3daa135d

## Summary

### Background

The appeal was filed by the Erstwhile Director of Modern Syntex (India) Limited (Corporate Debtor) against the order of the Adjudicating Authority (NCLT) dated 15.06.2023. The main application was filed jointly by the Administrator of Specified Undertaking of Unit Trust of India (SUUTI) and its sister concern UTI Trust Private Limited under Section 7 of IBC, 2016, seeking initiation of CIRP against Modern Syntex (India) Limited. The application was allowed on 23.08.2022, and Mr. Partha Sarathy Sarkar was appointed as IRP, later confirmed as RP. The applicant submitted that RP had not verified SUUTI's claim from the books of accounts and ignored the OTS dated 23.10.2008. SUUTI had sanctioned/subscribed to debentures and UTNs in 1994-95. The Corporate Debtor initiated

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## Facts

The Corporate Debtor, Modern Syntex (India) Limited, faced CIRP proceedings initiated by SUUTI and UTI Trust Private Limited under Section 7 of IBC, 2016. SUUTI had sanctioned debentures and UTNs to the Corporate Debtor in 1994-95. In 2008, an OTS was entered for Rs.16.00 Crores, but the Corporate Debtor failed to pay the remaining amount of Rs.13.6 Crores after paying Rs. 2.40 Crores. SUUTI filed a claim of Rs. 4874,97,58,908/-, and UTI Trust Private Limited filed a claim of Rs. 916,19,56,515/-. The RP admitted the claim of SUUTI and its sister concern, totaling Rs. 5791,17,15,425/-. The appellant, an independent director, challenged the admission of SUUTI's claim, arguing that it should have been admitted as per the OTS. However, SUUTI contended that the OTS was

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## Issues and analysis

### Issue 1: Whether the Appellant, being an independent director, has the locus standi to file the present …

**Ratio:** An independent director generally does not have a pecuniary interest in the resolution of

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**Reasoning:** The court noted that the appellant is an independent director with no pecuniary interest

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**Interpretation:** The court interpreted that an independent director, lacking a direct financial

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**Application:** The court applied this principle to the present case, finding that the

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## Parties

- **Judges:** Rakesh Kuma…; Ajai Das Me…
- **Appellants:** Niraj Ra…
- **Respondents:** Modern Syntex…; Partha Sarathy…

## Timeline

- **2018-01-01 — CP No. (IB)-39(PB)/2018…**: The main application bearing CP No. (IB)-39(PB)/2018 was filed jointly by the…
- **2022-08-23 — Application…**: The application was allowed as per order dated 23.8.2022, and Mr. Partha Sarathy Sarkar…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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