# In the matter of Sandeep Axles Pvt. Ltd. (Regal Metal & Ferro Alloys Vs. Sandeep Axles Pvt. Ltd.) (IB)-420-(ND)-2017

> NCLT judgment dated 2018-07-05. Citation: TCN-2018-NCLT-01191. The case involves M/s. Regal Metal & Ferro Alloys Vs. M/s. Sandeep Axles Pvt. Ltd. before the…

- **Court:** NCLT
- **Order date:** 5 Jul 2018
- **Citation:** TCN-2018-NCLT-01191
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sandeep-axles-pvt-ltd-regal-metal-ferro-alloys-vs-sandeep-axles-pvt-ltd-623ce642

## Summary

### Background

The case involves M/s. Regal Metal & Ferro Alloys Vs. M/s. Sandeep Axles Pvt. Ltd. before the National Company Law Tribunal (NCLT), New Delhi Bench. The resolution process is nearing its expiration date of 12th July, 2018. The Resolution Professional (RP) has allegedly failed to take diligent action, citing non-cooperation from the ex-Directors. It is alleged that the Corporate Debtor sold a piece of land after the issuance of the first demand notice, and the proceeds have not been deposited in the Corporate Debtor's account. An email was sent to the Ex-Directors of the Corporate Debtor. The assets of the company as shown in the Balance Sheet have not been physically traced out and identified by the RP. A forensic audit is being conducted by M/s. S. S. Kothari.

## Facts

The Corporate Debtor, Sandeep Axles Pvt. Ltd., is undergoing a resolution process. The resolution process is set to expire on 12th July, 2018. The RP is accused of failing to act diligently, blaming the ex-Directors' lack of cooperation. The Corporate Debtor allegedly sold a piece of land after the first demand notice was issued, and the proceeds were not deposited into the company's account. The assets listed in the balance sheet have not been physically traced or identified by the RP. A forensic audit is being conducted by M/s. S. S. Kothari. The sale deed for the land was executed without the receipt of sale consideration, as the cheque was never honored. Ms. Sunita Gulati, the purchaser, is restrained from alienating the Corporate Debtor's property.

## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) has …

**Ratio:** The RP is expected to act diligently and take all necessary steps to identify and value

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**Reasoning:** The court notes the RP's failure to physically trace and identify the assets of the

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**Interpretation:** This highlights the RP's duty to actively pursue the identification and

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**Application:** The court's concern suggests that the RP's actions may not have met the

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## Parties

- **Judges:** Ina Mal…
- **Appellants:** Regal Metal &…
- **Respondents:** Sandeep Axles…

## Timeline

- **2018-07-05 — Hearing…**: Hearing before the…
- **2018-07-12 — Resolution Process…**: The 270 days of the Resolution…

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