# In the matter of Vipul-S Plastocrafts Private Limited

> NCLT judgment dated 18 Apr 2024. Citation: TCN-2024-NCLT-01685. This application, MA 2987/2019, was filed by TJSB Sahakari Bank Limited (the Applicant)…

- **Court:** NCLT
- **Order date:** 18 Apr 2024
- **Citation:** TCN-2024-NCLT-01685
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vipul-s-plastocrafts-private-limited-6b83e122

## Summary

### Background

This application, MA 2987/2019, was filed by TJSB Sahakari Bank Limited (the Applicant) against M/s Vipul S Plastocrafts Private Limited (the Corporate Debtor) and multiple respondents under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Applicant sought severe penalties against the respondents for alleged fraudulent initiation of the Corporate Insolvency Resolution Process (CIRP), falsification of books, willful and material omissions from statements, and false representations to creditors. The Applicant also requested the dismissal of Company Petition No. 1669 of 2018, which initiated the CIRP, and the revocation of orders passed thereunder.

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## Facts

TJSB Sahakari Bank Limited (the Applicant) sanctioned various loan facilities to M/s Vipul S Plastocrafts Private Limited (the Corporate Debtor) between 2008 and 2013. Respondents No. 8 and 9 acted as personal guarantors for these loan facilities. The Corporate Debtor made regular payments to the Applicant from 2011 to 2016, indicating a period of compliance with the loan agreements.

On July 15, 2014, Respondent No. 2 was appointed as an Additional Director of the Corporate Debtor. Subsequently, on January 19, 2016, Respondent No. 2 acquired 80% shareholding of the Corporate Debtor. Following this transfer of shareholding, the Corporate Debtor began defaulting on its loan installment payments to the Applicant.

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) was fraudulently initiated by the…

**Ratio:** The NCLT did not lay down a specific legal rule on fraudulent initiation in this context,…

**Reasoning:** The Applicant alleged that the CIRP was initiated based on false and fabricated invoices…

**Interpretation:** The court's approach suggests that once a liquidation order is passed, the…

**Application:** Given that the Corporate Debtor was already in liquidation, the prayer to…

## Parties

- **Judges:** Prabhat…; V.G. B…
- **Advocates:** For the Applicant:…; Shreyansh Desai…; +1 more

## Timeline

- **July 15, 2014 — Appointment of…**: Respondent No. 2 was appointed as the…
- **January 19, 2016 — Shareholding…**: 80% shareholding of the Corporate Debtor was transferred to Respondent No. 2, after which…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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