# In the matter of Akshaya Imaging Systems Private Limited

> NCLT judgment dated 2024-04-26. Citation: TCN-2024-NCLT-01561. The case involves applications filed by the Liquidator of Akshaya Imaging Systems Private…

- **Court:** NCLT
- **Order date:** 26 Apr 2024
- **Citation:** TCN-2024-NCLT-01561
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/akshaya-imaging-systems-private-limited-0137febf

## Summary

### Background

The case involves applications filed by the Liquidator of Akshaya Imaging Systems Private Limited under Section 66 of the Insolvency and Bankruptcy Code, 2016, alleging fraudulent transactions. The Corporate Insolvency Resolution Process (CIRP) was initiated against Akshaya Imaging Systems Private Limited by Syndicate Bank on 31.05.2018. Subsequently, liquidation was ordered on 07.08.2018, and Mr. Varadachari Kumar was appointed as the Liquidator. The Liquidator identified several irregularities in the books of accounts and filed applications seeking to declare certain transactions as fraudulent and to direct respondents to contribute to the assets of the Corporate Debtor.

## Facts

Syndicate Bank initiated CIRP against Akshaya Imaging Systems Private Limited on 31.05.2018. Liquidation was ordered on 07.08.2018, and Mr. Varadachari Kumar was appointed as Liquidator. The Liquidator identified irregularities in the Corporate Debtor's accounts, including promoter withdrawals, decreased current assets, unmatched DG diesel expenses, missing assets, written-off amounts, and trade debtor issues. The Liquidator filed applications under Section 66 of IBC, 2016, alleging fraudulent transactions. The respondents, including suspended directors and trade debtors, contested the allegations, claiming commercial decisions and lack of dishonest intent. The Liquidator sought to recover amounts from Kerala Trade Zone (Rs.13,40,806), Digital Plate Systems Private

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## Issues and analysis

### Issue 1: Whether the Liquidator is empowered to file …

**Ratio:** The Hon'ble NCLAT in the judgment referred supra has held that if the Liquidator finds

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**Reasoning:** The Tribunal relied on the judgment of the Hon'ble NCLAT, which held that if the

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**Interpretation:** Section 66 of the IBC, 2016 allows the Liquidator to file applications for

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**Application:** The Tribunal held that the Liquidator has the locus to file the applications

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Syndicate…
- **Respondents:** Akshaya Imaging…; Sreenivasan…
- **Advocates:** Badrinara…; S. Sathiyanarayana…; +1 more

## Timeline

- **2018-05-31 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Akshaya Imaging Systems…
- **2018-08-07 — Liquidation…**: This Tribunal thereafter vide order dated 07.08.2018 ordered for the liquidation of the…

## 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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