# In the matter of Ajudhia Distributors Pvt. Ltd. CA Nos. 238 & 418-KB-2017 IN CP No. 181-KB-2017 (Cost Imposed)

> NCLT judgment dated 2017-12-15. Citation: TCN-2017-NCLT-00047. The case involves a corporate insolvency resolution process initiated by Radico Khaitan Ltd.,…

- **Court:** NCLT
- **Order date:** 15 Dec 2017
- **Citation:** TCN-2017-NCLT-00047
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ajudhia-distributors-pvt-ltd-ca-nos-238-418-kb-2017-in-cp-no-181-kb-2017-cost-im-0168b561

## Summary

### Background

The case involves a corporate insolvency resolution process initiated by Radico Khaitan Ltd., an operational creditor, against Ajudhia Distributors Pvt. Ltd., the corporate debtor. The Interim Resolution Professional (IRP), Mr. Arun Kumar Khandelia, was appointed. However, the corporate debtor failed to cooperate, not attending meetings or providing necessary information. This led the IRP to file an application seeking directions to compel the corporate debtor to provide the required information. Despite directions from the Tribunal and a show cause notice to the Director, Mr. Mohit Korpal, the corporate debtor continued to be non-cooperative.

## Facts

Radico Khaitan Ltd., an operational creditor, filed a CP under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Ajudhia Distributors Pvt. Ltd., the corporate debtor, seeking initiation of the corporate insolvency resolution process. The petition was admitted on 1/5/2017, and Mr. Arun Kumar Khandelia was appointed as the Interim Resolution Professional. The corporate debtor failed to cooperate with the IRP, not attending meetings or providing necessary information. The IRP filed an application (CA/(IB) No.238/KB/2017) under Sec.19(2) and 19(3) of the I&B Code seeking directions to the corporate debtor. A show cause notice was issued to the Director, Mr. Mohit Korpal, on 9/10/2017. The Director failed to provide an explanation, leading to the

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## Issues and analysis

### Issue 1: Whether the corporate debtor's non-cooperation with the insolvency resolution process warrants the …

**Ratio:** Section 70 of the I&B Code empowers the Tribunal to take action against a corporate

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**Reasoning:** The Tribunal reasoned that the corporate debtor's consistent failure to attend meetings,

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**Interpretation:** Section 70 of the I&B Code is interpreted to grant the Tribunal broad

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**Application:** The Tribunal applied Section 70 to the facts of the case, finding that the

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Appellants:** Radico Khaitan…
- **Respondents:** Ajudhia Distributo…
- **Advocates:** Arnab D…; Banoshree…; +1 more

## Timeline

- **2017-05-01 — Petition Ad…**: The Tribunal admitted the petition…
- **2017-05-01 — IRP Appo…**: Mr. Arun Kumar Khandelia was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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