# 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-00050. The case originates from an application filed by Radico Khaitan Ltd., an operational creditor,…

- **Court:** NCLT
- **Order date:** 15 Dec 2017
- **Citation:** TCN-2017-NCLT-00050
- **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-7848bb1b

## Summary

### Background

The case originates from an application filed by Radico Khaitan Ltd., an operational creditor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking the initiation of the corporate insolvency resolution process against Ajudhia Distributors Pvt. Ltd., the corporate debtor. The Tribunal admitted the petition on 2017-05-01 and appointed Mr. Arun Kumar Khandelia as the Interim Resolution Professional (IRP). However, the corporate debtor failed to cooperate with the IRP, not attending meetings or providing necessary information. Consequently, the IRP filed an application seeking directions to the corporate debtor to provide the required information. Despite these directions, 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 Tribunal admitted the petition on 2017-05-01 and appointed Mr. Arun Kumar Khandelia as the Interim Resolution Professional (IRP). The corporate debtor failed to cooperate with the IRP by not attending meetings or providing necessary information. The IRP filed an application seeking directions to the corporate debtor to provide the required information. The Tribunal issued show cause notices to the Director, Mr. Mohit Korpal, and the corporate debtor, directing them to explain why penalties should not be imposed under

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## Issues and analysis

### Issue 1: Whether the corporate debtor's non-cooperation with the Interim Resolution Professional and the …

**Ratio:** Section 70 of the I&B Code empowers the Tribunal to impose penalties for

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

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**Interpretation:** Section 70 of the I&B Code is interpreted to provide the Tribunal with

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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…

## Timeline

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

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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