# In the matter of Duckbill Drugs Private Limited

> NCLT judgment dated 2024-06-19. Citation: TCN-2024-NCLT-01142. The case involves an application by the liquidator of Duckbill Drugs Private Limited against…

- **Court:** NCLT
- **Order date:** 19 Jun 2024
- **Citation:** TCN-2024-NCLT-01142
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/duckbill-drugs-private-limited-8cd3b94c

## Summary

### Background

The case involves an application by the liquidator of Duckbill Drugs Private Limited against the former directors, Mr. Swapan Mukherjee, Mr. Arjun Mukherjee, Mrs. Poulami Mukherjee, and a related party, M/s. Sanjeev Prakash Lal, under Sections 43 and 66 of the Insolvency and Bankruptcy Code, 2016. The corporate debtor, Duckbill Drugs Pvt Ltd, was admitted into CIRP on 17.12.2019. Due to the absence of a resolution applicant, the company was ordered into liquidation on 13.04.2021. The liquidator alleges misconduct by the suspended board, including falsification of accounts, mishandling of cash, transactions with related parties, and failure to hand over assets and records. The liquidator seeks recovery of funds and avoidance of transactions deemed fraudulent.

## Facts

Duckbill Drugs Pvt Ltd was admitted into CIRP on 17.12.2019, and subsequently ordered into liquidation on 13.04.2021 due to the absence of a resolution applicant. The liquidator, CA Santanu Brahma, filed an application against the former directors (Mr. Swapan Mukherjee, Mr. Arjun Mukherjee, Mrs. Poulami Mukherjee) and a related party (M/s. Sanjeev Prakash Lal) alleging misconduct and fraudulent transactions. Key allegations include: 1) Falsification of accounts: Discrepancies between management's Tally software-based accounts and the corporate debtor's audited financials. The audited trial balance showed a balance of Rs. 49,34,311.74 due from Mr. Arjun Mukherjee and Mr. Swapan Mukherjee, while the trial balance provided by the suspended board indicated a balance of

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## Issues and analysis

### Issue 1: Whether the suspended board of directors can evade responsibility for the affairs of the Corporate …

**Ratio:** Directors of a company remain responsible for the conduct and affairs of the business,

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**Reasoning:** The tribunal found that the suspended board could not evade responsibility by claiming

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**Interpretation:** This highlights the principle that directors cannot abdicate their

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**Application:** The tribunal applied this principle to the facts of the case, holding the

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## Parties

- **Judges:** BIDISHA BA…; SHRI. D.A…
- **Appellants:** Bell Finvest…
- **Respondents:** Duckbill Drugs…; Swapan Muk…

## Timeline

- **2018-05-28 — Application under…**: Financial Creditor filed an application to…
- **2019-12-17 — CIRP Comm…**: CIRP commenced pursuant to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 70 — Punishment for misconduct in course of corporate…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-70)

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