# In the matter of Divyaswarna (OPC) Private Limited

> NCLT judgment dated 2024-09-25. Citation: TCN-2024-NCLT-00550. The case involves an application under Section 66 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 25 Sept 2024
- **Citation:** TCN-2024-NCLT-00550
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/divyaswarna-opc-private-limited-b1c59405

## Summary

### Background

The case involves an application under Section 66 of the Insolvency and Bankruptcy Code, 2016, regarding fraudulent transactions by Divyaswarna (OPC) Private Limited (Corporate Debtor). The Interim Resolution Professional (IRP), Sudipto Ghosh, filed the application seeking reliefs including adjudging certain transactions as fraudulent and directing the respondent, Ankur Verma, to contribute Rs. 36,75,000 to the assets of the Corporate Debtor. The IRP conducted a preliminary investigation and appointed TKR & Associates to conduct a transaction audit.

## Facts

Divyaswarna (OPC) Private Limited is the Corporate Debtor. Seemant Nahata is the Operational Creditor. Sudipto Ghosh is the Interim Resolution Professional (IRP) and applicant. Ankur Verma is the respondent. The IRP filed an application under Section 66 of the Insolvency and Bankruptcy Code, 2016, alleging fraudulent transactions. The IRP conducted a preliminary investigation and appointed TKR & Associates to conduct a transaction audit. The audit revealed that Rs. 36.75 lakhs were withdrawn by self-cheques after the demand notice was received. The respondent allegedly opened a sole proprietorship jewellery business under the name Divya Swarna Jewels around the same time. The last available audited balance sheet of the Corporate Debtor was on March 31, 2019. The

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## Issues and analysis

### Issue 1: Whether the time period under Regulation 35(A) of the CIRP regulations is mandatory or directory in …

**Ratio:** The time period under Regulation 35(A) of the CIRP regulations is directory in character,

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**Reasoning:** The court relied on the NCLAT's decision in Mr. Tenny Josh Vs. Mr. Prathap Pillai,

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**Interpretation:** Regulation 35(A) of the CIRP Regulations outlines the timeline for the IRP to

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**Application:** The court condoned the delay in filing the application, as the time period

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Seemant N…
- **Respondents:** Divyaswarna (OPC)…; Ankur V…
- **Advocates:** Urmila Chak…; Pallavi…; +3 more

## Timeline

- **2020-02-01 — Demand N…**: Demand notice was…
- **2020-03-18 — Application…**: Application filed before…

## 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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