The case involves two appeals, Company Appeal (AT)(Insolvency) No.565 of 2021 and Company Appeal (AT)(Insolvency) No.594 of 2021, challenging an order dated 26.07.2021 passed by the National Company Law Tribunal (NCLT), Allahabad Bench, in IA No.19/2021 filed in CP No.(IB)223/ALD/2019. The NCLT order allowed the liquidator to distribute accumulated cash profits of the corporate debtor, JVL Agro Industries Ltd, to stakeholders. The appellant in No.594/2021 is the ex-Director, and the appellant in No.565/2021 is an employee of the corporate debtor. The appeals were heard together and are being disposed of by a common judgment.
The corporate debtor, JVL Agro Industries Ltd, underwent Corporate Insolvency Resolution Process (CIRP) initiated by Standard Chartered Bank under Section 7 of IBC. The application was admitted on 25.07.2018, and Mr. Supriyo Kumar Chaudhuri was appointed as the Resolution Professional. After the failure of CIRP, liquidation was ordered on 19.08.2020. During liquidation, the Stakeholders Consultation Committee considered distributing approximately Rs.99.35 crores lying in the corporate debtor's bank account to the shareholders. The liquidator prepared a liquidation cost estimate of Rs.21.95 crores, which was less than the accumulated cash profit of Rs.96.21 crores. The liquidator filed IA No.19/2021 seeking clarification on whether the accumulated cash profit could be
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Application under…
Mr Supriyo Kumar…
The case involves two appeals, Company Appeal (AT)(Insolvency) No.565 of 2021 and Company Appeal (AT)(Insolvency) No.594 of 2021, challenging an order dated 26.07.2021 passed by the National Company Law Tribunal (NCLT), Allahabad Bench, in IA No.19/2021 filed in CP No.(IB)223/ALD/2019. The NCLT order allowed the liquidator to distribute accumulated cash profits of the corporate debtor, JVL Agro Industries Ltd, to stakeholders. The appellant in No.594/2021 is the ex-Director, and the appellant in No.565/2021 is an employee of the corporate debtor. The appeals were heard together and are being disposed of by a common judgment.
The corporate debtor, JVL Agro Industries Ltd, underwent Corporate Insolvency Resolution Process (CIRP) initiated by Standard Chartered Bank under Section 7 of IBC. The application was admitted on 25.07.2018, and Mr. Supriyo Kumar Chaudhuri was appointed as the Resolution Professional. After the failure of CIRP, liquidation was ordered on 19.08.2020. During liquidation, the Stakeholders Consultation Committee considered distributing approximately Rs.99.35 crores lying in the corporate debtor's bank account to the shareholders. The liquidator prepared a liquidation cost estimate of Rs.21.95 crores, which was less than the accumulated cash profit of Rs.96.21 crores. The liquidator filed IA No.19/2021 seeking clarification on whether the accumulated cash profit could be
…Application under…
Mr Supriyo Kumar…