# In the matter of Web Tech Packaging (India) Pvt. Ltd. IA-102-2021 in (IB)-984 (ND) -2019

> NCLT judgment dated 2021-11-12. Citation: TCN-2021-NCLT-00512. The application was filed under Section 66 of the Insolvency and Bankruptcy Code, 2016, by the…

- **Court:** NCLT
- **Order date:** 12 Nov 2021
- **Citation:** TCN-2021-NCLT-00512
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/web-tech-packaging-india-pvt-ltd-ia-102-2021-in-ib-984-nd-2019-b2d258af

## Summary

### Background

The application was filed under Section 66 of the Insolvency and Bankruptcy Code, 2016, by the Resolution Professional, Mrs. Ashu Gupta, of the Corporate Debtor, M/s Web Tech Packagings (INDIA) Private Limited, seeking reliefs related to fraudulent transactions and misappropriation of funds. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 25.07.2019, and Mrs. Ashu Gupta was appointed as the Resolution Professional. A forensic audit was conducted, revealing several instances of financial irregularities and fraudulent activities by the respondents.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Web Tech Packagings (INDIA) Private Limited on 25.07.2019. The Resolution Professional, Mrs. Ashu Gupta, appointed M/s VMRS & Associates to conduct a forensic audit. The forensic audit report revealed several financial irregularities, including: Diversion of stock worth Rs. 5,48,50,824; Fund misappropriation worth Rs. 24,02,726 under related party transactions; Overstated electricity expenses worth Rs. 21,70,949; Excessive remuneration charged worth Rs. 1,89,14,000; Negative balance of cash in hand worth Rs. 15,92,574; Concealment of statutory dues worth Rs. 1,29,11,964. The respondents, including directors Sunil Tangri and Ramni Tangri, allegedly manipulated books of accounts and engaged

…

## Issues and analysis

### Issue 1: Whether the present application filed by the Resolution Professional is maintainable under Section …

**Ratio:** The regulations prescribing timelines for preferential transactions are directory in

…

**Reasoning:** The court reasoned that the delay in filing the application was due to the non-furnishing

…

**Interpretation:** The interpretation of Regulation 35A and 40A of the IBBI Regulations, along

…

**Application:** The court applied the ratio to the facts of the case, noting that the delay in

…

## Parties

- **Judges:** Sh. Abni Ranjan…; SH. L. N.…
- **Appellants:** M/s AC Goel…
- **Respondents:** M/s Web Tech…; Sunil T…
- **Advocates:** Vinod K…; Ivan…; +6 more

## Timeline

- **2019-07-25 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP)…
- **2020-07-02 — CoC Resol…**: Committee of Creditors (COC) in its 8th meeting resolved and authorized the Resolution…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/web-tech-packaging-india-pvt-ltd-ia-102-2021-in-ib-984-nd-2019-b2d258af