# In the matter of Sainath Texport Ltd. CA No. 313-2019 In CP (IB) No.56-Chd-Hry-2018

> NCLT judgment dated 2019-05-09. Citation: TCN-2019-NCLT-03350. The case pertains to CA No. 313/2019 in CP (IB) No.56/Chd/Hry/2018, an admitted matter under…

- **Court:** NCLT
- **Order date:** 9 May 2019
- **Citation:** TCN-2019-NCLT-03350
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sainath-texport-ltd-ca-no-313-2019-in-cp-ib-no56-chd-hry-2018-675f685d

## Summary

### Background

The case pertains to CA No. 313/2019 in CP (IB) No.56/Chd/Hry/2018, an admitted matter under Section 66 & 67 of the Insolvency and Bankruptcy Code, 2016. The matter involves M/s PAN Chemicals Inc. as the operational creditor and M/s Sainath Texport Ltd. as the respondent-corporate debtor. Vikas Garg, the liquidator, is the applicant, and Mr. Satyaveer Kothari, Director & Ors., are the respondents.

## Facts

M/s PAN Chemicals Inc., through its proprietor Ramji Lal, filed an application against M/s Sainath Texport Ltd., the corporate debtor. The application was filed under Section 66 & 67 of the Insolvency and Bankruptcy Code, 2016. The Liquidator, Vikas Garg, is the applicant. The court noted that the application had been served to the alleged defaulters, but no reply was filed, and no one was present for the respondents. The court directed the issuance of notice to the respondents to show cause why they should not be held liable under Section 66 and 67 of the IBC for committing default as communicated after forensic audit. The applicant is directed to serve the notice and file an affidavit of service.

## Issues and analysis

### Issue 1: Whether the respondents are liable under Section 66 read with Section 67 of the Insolvency and …

**Ratio:** Section 66 of the Insolvency and Bankruptcy Code, 2016 deals with fraudulent or wrongful

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**Reasoning:** The court directed the issuance of notice to the respondents to show cause why they

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**Interpretation:** Sections 66 and 67 of the IBC aim to prevent and penalize fraudulent activities

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**Application:** The court is applying these sections by requiring the respondents to

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## Parties

- **Judges:** M.K. Sh…; Pradeep R.…
- **Appellants:** M/s PAN Chemicals…
- **Respondents:** M/s Sainath…

## Timeline

- **2018-01-01 — CP (IB) No.56/Chd/Hry/20…**: Corporate Insolvency…
- **2019-05-09 — Order Da…**: Court directs notice to be issued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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