# In the matter of Advance Multisystem Broadband Communications Limited I.A. (IB) No. 841 & 1241-KB-2020 in C.P. (IB) No. 1510-KB-2018

> NCLT judgment dated 2022-05-30. Citation: TCN-2022-NCLT-02537. The case involves an application under Section 60(5) and Section 25(2)(j) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 30 May 2022
- **Citation:** TCN-2022-NCLT-02537
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/advance-multisystem-broadband-communications-limited-ia-ib-no-841-1241-kb-2020-i-09787c35

## Summary

### Background

The case involves an application under Section 60(5) and Section 25(2)(j) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rule, 2016. The applicant, Shri Kuldeep Verma (Resolution Professional), filed Interlocutory Application No. 841 of 2020. The RP sought directions to protect the assets of the Corporate Debtor, Advance Multisystem Broadband Communications Limited (AMBC), from being parted with by the holding company, Induslnd Media & Communications Limited (IMCL). The RP also sought to declare certain transactions as preferential, undervalued, and fraudulent. The CIRP was initiated, and the RP was appointed. The RP requested police assistance to take possession of the assets and books of accounts of the

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## Facts

Advance Multisystem Broadband Communications Limited (AMBC) underwent Corporate Insolvency Resolution Process (CIRP). Kuldeep Verma was appointed as the Resolution Professional (RP). The RP filed an application alleging that Induslnd Media & Communications Limited (IMCL), the holding company of AMBC, engaged in preferential, undervalued, and fraudulent transactions to insulate the assets of AMBC. The RP claimed that the directors and officers of AMBC did not cooperate and failed to provide necessary documents. The authorized share capital of AMBC was Rs.15 Crores in 2000, with IMCL holding 59.61% equity shares. The RP alleged that IMCL sold shares of AMBC at a distress value without making a public offer, violating the terms of a loan sanction letter from Allahabad

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## Issues and analysis

### Issue 1: Whether the RP can file an application under section 25(2)(j) of the IBC only after being satisfied …

**Ratio:** The RP can file an application under section 25(2)(j) only after being satisfied about

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**Reasoning:** The court relied on the Hon'ble Supreme Court's decision in Anuj Jain Vs Axis Bank

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**Interpretation:** This interpretation emphasizes the need for the RP to conduct thorough

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**Application:** In this case, the RP was found to have filed the application without conducting

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Kuldeep…
- **Respondents:** Advance Multisyste…; Induslnd Media…

## Timeline

- **2018-08-04 — Resignation of Local…**: Local Directors Shri Santimoy Ghosh and Shri Sujit Das allegedly resigned from the Board…
- **2018-08-01 — Star India issues…**: Star India Private Limited issued…

## 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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