# In the matter of Smt. K. Bharathi Vs. Kotak Mahindra Bank Ltd. & 4 Ors. CA(AT)(Insolvency) No. 17 & 18-2019

> NCLAT judgment dated 2 Sept 2019. Citation: TCN-2019-NCLAT-00321. The case involves two appeals challenging similar orders passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 2 Sept 2019
- **Citation:** TCN-2019-NCLAT-00321
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/smt-k-bharathi-vs-kotak-mahindra-bank-ltd-4-ors-ca-f8fac238

## Summary

### Background

The case involves two appeals challenging similar orders passed by the National Company Law Tribunal (NCLT), Chennai, on December 19, 2018. These orders arose from two separate Corporate Insolvency Resolution Processes (CIRP) initiated against M/s. Green Gardens Private Limited (Corporate Debtor No. 1) and M/s. Gemini Arts Private Limited (Corporate Debtor No. 2). In both CIRPs, Mr. Nurani Subramanian Suryanarayanan was appointed as the common Resolution Professional. Kotak Mahindra Bank (Financial Creditor) and Smt. K. Bharathi (another Financial Creditor) were involved in both processes simultaneously.

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## Facts

Two Corporate Insolvency Resolution Processes (CIRP) were initiated against M/s. Green Gardens Private Limited (Corporate Debtor No. 1) and M/s. Gemini Arts Private Limited (Corporate Debtor No. 2). Mr. Nurani Subramanian Suryanarayanan was appointed as the common Resolution Professional for both entities. In these parallel CIRPs, Kotak Mahindra Bank (Financial Creditor) and Smt. K. Bharathi (another Financial Creditor) were involved simultaneously.

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## Issues and analysis

### Issue 1: Whether Smt. K. Bharathi, as the mother-in-law of the erstwhile Managing Director of the Corporate…

**Ratio:** A person whose daughter is a shareholder, director, and key managerial personnel of the…

**Reasoning:** The Adjudicating Authority, referring to Section 5(24A) of the I&B Code and its…

**Interpretation:** The court interpreted Section 5(24A) of the I&B Code broadly to include…

**Application:** Given that Smt. K. Bharathi's daughter, Mrs. Padma Manohar, was a shareholder,…

## Parties

- **Judges:** S.J. Mukhop…
- **Advocates:** Debal Kumar…; Raghav Me…; +7 more

## Timeline

- **December 19, 2018 — NCLT Ord…**: NCLT, Chennai passed two separate, verbatim similar orders in MA/639/2018 and…
- **January 24, 2019 — CoC Meet…**: The Committee of Creditors held a meeting and replaced the erstwhile Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(24a) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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