# In the matter of V Karthikayan Vs. M.S. Viswanathan and Ors. Company Appeal (AT)(CH)(Ins) No. 245/2022

> NCLAT judgment dated 2022-10-13. Citation: TCN-2022-NCLAT-00157. The case involves an appeal against an order of liquidation passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 13 Oct 2022
- **Citation:** TCN-2022-NCLAT-00157
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/v-karthikayan-vs-ms-viswanathan-and-ors-company-appeal-aa31c949

## Summary

### Background

The case involves an appeal against an order of liquidation passed by the Adjudicating Authority (National Company Law Tribunal, Special Bench – II, Chennai) in IA/196(CHE)/2022 in IBA/578/2019. The appellant, the suspended director of M/s. Leo Primecomp Pvt. Ltd., filed the appeal, Comp. App. No. (AT)(CH)(Ins) No.245/2022, challenging the correctness of the liquidation order. The appellant remitted a total of Rs.72 Crore to the 2nd Respondent / State Bank of India (Sole Member of the Committee of Creditor) as a resolution plan.

## Facts

The 'Adjudicating Authority' (National Company Law Tribunal, Special Bench – II, Chennai) passed an ‘Order' of 'Liquidation' on 06.06.2022 against the 'Corporate Debtor', M/s. Leo Primecomp Pvt. Ltd. The 'Appellant' / 'Suspended Director of M/s. Leo Primecomp Pvt. Ltd.', filed an appeal against this order. The appellant remitted Rs.72 Crore to the 2nd Respondent / State Bank of India (Sole Member of the Committee of Creditor), with Rs.17.51 Crore remitted on 30.08.2022 and Rs.54.49 Crore on 27.09.2022. The appellant sought an order to set aside the liquidation order. The 2nd Respondent / State Bank of India did not object to this request. The appellant also requested exclusion of time from 07.03.2022 to 28.09.2022 and from 06.06.2022 to 13.10.2022.

## Issues and analysis

### Issue 1: Whether the 'Order' of 'Liquidation' dated 06.06.2022 passed by the 'Adjudicating Authority' should …

**Ratio:** The principle of preventing an aberration of justice and permitting the substantial cause

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**Reasoning:** The tribunal considered the fact that the appellant had remitted Rs.72 Crore to the State

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**Interpretation:** The interpretation focuses on the tribunal's power to ensure justice and

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** M. Venu…; Naresh Sa…
- **Appellants:** V Karthi…
- **Respondents:** Leo Primecomp…; M.S. Viswanathan…

## Timeline

- **2022-06-06 — Order of Liqu…**: The Adjudicating Authority passed an order of…
- **2022-08-30 — Remittance of Upfront…**: The Appellant remitted an…

## 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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