# In the matter of Man Tubinox Ltd. IA 1235-2020 in C.P.(IB)-4348-(MB)-2018

> NCLT judgment dated 2021-10-06. Citation: TCN-2021-NCLT-00817. The case involves an application filed by the Resolution Professional (RP) of Man Tubinox Ltd…

- **Court:** NCLT
- **Order date:** 6 Oct 2021
- **Citation:** TCN-2021-NCLT-00817
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/man-tubinox-ltd-ia-1235-2020-in-cpib-4348-mb-2018-08d3d0d9

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Man Tubinox Ltd under Section 14(1)(b) r/w Section 66 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the reversal of a transaction deemed illegal. The transaction involved handing over the property of the Corporate Debtor, Man Tubinox Ltd, to respondents during the moratorium period. The petition's admission was heard on 29.03.2019 and reserved for orders, which were pronounced on 12.06.2019, and an Interim Resolution Professional (IRP) was appointed on the same date. The Corporate Debtor held lease rights over an area in Madhya Pradesh, obtained from Madhya Pradesh Audyogik Kendra Vikas Nigam (MPAKVN). A sub-lease deed was executed with Maan Tubes Ltd on 01.04.2019, assigning a

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## Facts

Man Tubinox Ltd faced corporate insolvency proceedings. The Resolution Professional (RP) filed an application under Section 14(1)(b) r/w Section 66 of the IBC, 2016, seeking the reversal of a transaction. The transaction involved the Corporate Debtor handing over property to respondents during the moratorium period. The petition was heard on 29.03.2019 and reserved for orders, with the order pronounced on 12.06.2019, and an Interim Resolution Professional (IRP) appointed. Man Tubinox Ltd held lease rights over land in Madhya Pradesh, obtained from MPAKVN, with the lease expiring on 21.06.2045. A sub-lease deed was executed on 01.04.2019 with Maan Tubes Ltd, assigning a portion of the leasehold. The RP argued this was a mala fide attempt to deprive creditors of assets.

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## Issues and analysis

### Issue 1: Whether the sub-lease of the Corporate Debtor's property to Maan Tubes Ltd during the moratorium …

**Ratio:** Section 66 of the IBC addresses fraudulent or wrongful trading during the corporate

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**Reasoning:** The court reasoned that the sub-lease was executed with a mala fide intention by the

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**Interpretation:** Section 66 is interpreted to prevent actions taken by the corporate debtor or

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**Application:** The court applied Section 66 to the facts by finding that the sub-lease was a

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Vikas Prakash…
- **Respondents:** Man Tubin…; Vinod Ku…
- **Advocates:** Shayam Ka…; Manoj M…; +1 more

## Timeline

- **2019-03-29 — Hearing of P…**: Admission of the Petition was…
- **2019-04-01 — Sub-Lease…**: Corporate Debtor entered into a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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