# In the matter of DNB Impex Private Limited

> NCLT judgment dated 2024-01-17. Citation: TCN-2024-NCLT-03024. The Resolution Professional (RP) of DNB Impex Private Limited, Mr. Tejas K Shah, filed an…

- **Court:** NCLT
- **Order date:** 17 Jan 2024
- **Citation:** TCN-2024-NCLT-03024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dnb-impex-private-limited-3ca7b07e

## Summary

### Background

The Resolution Professional (RP) of DNB Impex Private Limited, Mr. Tejas K Shah, filed an application under Section 19(2) read with Section 25(2)(a) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking directions from the National Company Law Tribunal (NCLT) against the suspended board of management for non-cooperation. Despite several reminders, the suspended management failed to provide essential documents and information necessary for the Corporate Insolvency Resolution Process (CIRP).

## Facts

Mr. Tejas K Shah, the Resolution Professional (RP) for DNB Impex Private Limited, initiated an application under Section 19(2) and Section 25(2)(a) of the IBC, 2016, due to the non-cooperation of the suspended board of management. The RP sought directions from the NCLT to compel the suspended management, including Mr. Bharatbhai Jerambhai Goyani and Mr. Dilipbhai Jerambhai Goyani, to provide necessary documents and information for the CIRP. Key documents such as audited financial statements, provisional financial statements, books of accounts, and details of assets and liabilities were not provided despite reminders. The suspended management failed to appear in multiple hearings, leading to an ex-parte proceeding. The order was pronounced on January 17, 2024.

## Issues and analysis

### Issue 1: Whether the suspended board of management of DNB Impex Private Limited is obligated to provide …

**Ratio:** Section 19 of the IBC, 2016, casts an obligation on the ex-personnel of the Corporate

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**Reasoning:** The NCLT reasoned that the smooth conduct of the CIRP requires the cooperation of the

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**Interpretation:** Section 19 of the IBC is interpreted to impose a mandatory obligation on the

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**Application:** In this case, the suspended board of management of DNB Impex Private Limited

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Tejas K…
- **Respondents:** DNB Impex Private…; Bharatbhai…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and Bankruptcy…
- **2023-07-13 — Previous Ord…**: As per the order dated 13.07.2023, None appears for the Respondents/Suspended Board of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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