# In the matter of Harishankar Paper Products Pvt. Ltd. I. A. No. 859 of 2022 in C.P. (IB) No. 150-7-HDB-2020

> NCLT judgment dated 2022-09-26. Citation: TCN-2022-NCLT-00942. The case involves an application (IA 859/2022) filed in an ongoing Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 26 Sept 2022
- **Citation:** TCN-2022-NCLT-00942
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/harishankar-paper-products-pvt-ltd-i-a-no-859-of-2022-in-cp-ib-no-150-7-hdb-2020-5ac059b7

## Summary

### Background

The case involves an application (IA 859/2022) filed in an ongoing Corporate Insolvency Resolution Process (CIRP) against Hari Shankar Paper Products Pvt Ltd. The application was filed by the Resolution Professional, Mr. Sunit Jagdishchandra Shah, seeking directions from the NCLT to the respondents (suspended directors of the corporate debtor) to provide detailed information necessary for conducting the CIRP. The CIRP was initiated on 2022-04-13.

## Facts

The Interim Resolution Professional (IRP), Mr. Sunit Jagdishchandra Shah, was appointed following an order dated 2022-04-13 by the NCLT Hyderabad. The IRP visited the registered office of the Corporate Debtor (Hari Shankar Paper Products Pvt Ltd) on 2022-04-23 and observed that the Corporate Debtor was not actively operating. The IRP requested the respondents (Mr. Shiv Shankar Taparia and Mr. Ram Kishore Taparia, suspended directors) to provide records and documents of the Corporate Debtor. Despite reminders, the respondents failed to provide the required information, hindering the CIRP. The Resolution Professional filed IA 859/2022 seeking directions from the NCLT to compel the respondents to cooperate and provide the necessary information.

## Issues and analysis

### Issue 1: Whether the suspended directors of the Corporate Debtor are obligated to provide information and …

**Ratio:** Section 19 of the Insolvency and Bankruptcy Code (IBC) mandates that the personnel of the

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**Reasoning:** The court reasoned that the suspended board of directors is duty-bound to provide all

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

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**Application:** The court applied this ratio to the facts by directing the respondents, being

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## Parties

- **Judges:** Venkata Ramakrishn…; Veera Brahma Rao…
- **Appellants:** Sunit Jagdishchand…
- **Respondents:** Hari Shankar…; Shiv Shankar…

## Timeline

- **2022-04-13 — CIRP Init…**: Date of initiation of Corporate…
- **2022-04-23 — IRP Visi…**: The Interim Resolution Professional (IRP) visited the registered office of the Corporate…

## Legal provisions

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

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