# In the matter of Educomp Infrastructure & School Management Limited CA No. 335-2018 in CP (IB) No. 10-CHD-Hry-2018

> NCLT judgment dated 2019-06-14. Citation: TCN-2019-NCLT-02895. The case pertains to an application filed by the Insolvency Resolution Professional (IRP) of…

- **Court:** NCLT
- **Order date:** 14 Jun 2019
- **Citation:** TCN-2019-NCLT-02895
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/educomp-infrastructure-school-management-limited-ca-no-335-2018-in-cp-ib-no-10-c-625d0f34

## Summary

### Background

The case pertains to an application filed by the Insolvency Resolution Professional (IRP) of Educomp Infrastructure & School Management Limited, a Corporate Debtor undergoing Corporate Insolvency Resolution Process (CIRP). The IRP sought directions from the National Company Law Tribunal (NCLT) to compel the ex-management, promoters, and other related parties to provide necessary information and cooperation for the smooth conduct of the CIRP. The IRP alleged that the ex-management and other parties failed to provide complete access to the Corporate Debtor's assets, financial records, and other crucial information, hindering the resolution process. The application was filed under Sections 19(2) & 19(3) read with 17, 18 & 25 of the Insolvency and Bankruptcy Code, 2016.

## Facts

Educomp Infrastructure & School Management Limited is undergoing Corporate Insolvency Resolution Process (CIRP). Mr. Ashwini Mehra is the Resolution Professional (RP). The RP filed an application (CA No.335/2018) because the ex-management, promoters, and other related parties failed to provide necessary information and cooperation. The RP sought access to the Corporate Debtor's assets, financial records, and ERP software 'Navision'. The ex-management, including Mr. Vinod Kumar Dandona (Suspended Director) and Mr. Shantanu Prakash (Promoter/Ex-Director), allegedly did not provide the required information. Several schools and trusts, contractual parties to the Corporate Debtor, were also impleaded as respondents for failing to provide financial details. The RP argued

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## Issues and analysis

### Issue 1: Whether the ex-management, promoters, and related parties of the Corporate Debtor are obligated to …

**Ratio:** Section 19 of the Insolvency and Bankruptcy Code (IBC) casts an obligation on the

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**Reasoning:** The NCLT reasoned that Section 19 of the IBC is unambiguous in its requirement for the

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**Interpretation:** Section 19 of the IBC mandates that the ex-management, promoters, and related

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**Application:** The NCLT applied this principle by directing the ex-management, including Mr.

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## Parties

- **Judges:** M.K. Sh…; Pradeep R.…
- **Appellants:** Ashwini…
- **Respondents:** M/s Educomp…; Vinod Kumar…

## Timeline

- **2018-04-25 — CIRP Admi…**: The application filed by Corporate Debtor under Section 10 of Insolvency & Bankruptcy…
- **2018-06-01 — Substitution…**: Mr. Ashwani Mehra resolved vide Committee of Creditors meeting held on 01.06.2018 which…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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