# In the matter of Zed Fabs India Private Limited I.A. No. 133-2018 in C.P. (IB) No. 133-BB-2017

> NCLT judgment dated 2019-09-20. Citation: TCN-2019-NCLT-01356. The case involves an application (I.A No.133 of 2018) filed by the Resolution Professional,…

- **Court:** NCLT
- **Order date:** 20 Sept 2019
- **Citation:** TCN-2019-NCLT-01356
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/zed-fabs-india-private-limited-ia-no-133-2018-in-cp-ib-no-133-bb-2017-aa3b6b1b

## Summary

### Background

The case involves an application (I.A No.133 of 2018) filed by the Resolution Professional, Smt. R. Bhuvaneshwari, seeking an order to identify, appropriate, and transfer assets of BCIL Red Earth (India) Private Limited, Biodiversity Conservation India Private Limited, and BCIL Green Energy (India) Private Limited to the Corporate Debtor, Zed Fabs India Private Limited, to cover outstanding dues. The application arises within the Corporate Insolvency Resolution Process (CIRP) of Zed Fabs India Private Limited. The Resolution Professional seeks to take possession of these assets to facilitate the CIRP.

## Facts

Zed Fabs India Private Limited was incorporated on January 11, 2011, and was engaged in the business of manufacturing and dealing in furniture and wood products. It primarily catered to the furnishing requirements of its group companies involved in real estate. The company faced financial difficulties, leading to the initiation of CIRP. The Resolution Professional identified that the company had outstanding dues from BCIL Red Earth (India) Private Limited (Rs.2,20,02,243/-), Biodiversity Conservation India Private Limited (Rs.1,49,26,282/-), and BCIL Green Energy (India) Private Limited (Rs.1,50,606/-). These companies are part of the same group and have a common director, Mr. Hariharan, who is also a promoter cum director of the Corporate Debtor. The financials of Zed

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## Issues and analysis

### Issue 1: Whether the assets of BCIL Red Earth (India) Private Limited, Biodiversity Conservation India …

**Ratio:** The principle of corporate insolvency resolution aims to maximize the value of the

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**Reasoning:** The court observed a diversion of funds from the Corporate Debtor to the Respondents,

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**Interpretation:** The legal issue involves the interpretation of the powers and duties of the

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**Application:** Given the disputed nature of the dues and the decision to liquidate the

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Ramanathan…; RamanathanBhuvanes…
- **Respondents:** Zed Fabs India…; Harih…

## Timeline

- **2011-01-11 — Incorporation of Zed…**: Zed Fabs India Private…
- **2018-02-02 — IRP Constitu…**: IRP constituted the CoC with Bank of…

## 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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