# In the matter of Krishna Ferro Products Ltd. IA(IB) No. 105-CB-2021 in CP (IB) No. 23-CTB-2019

> NCLT judgment dated 2022-03-09. Citation: TCN-2022-NCLT-03824. The Resolution Professional for Krishna Ferro Products Limited filed a petition under Section…

- **Court:** NCLT
- **Order date:** 9 Mar 2022
- **Citation:** TCN-2022-NCLT-03824
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/krishna-ferro-products-ltd-iaib-no-105-cb-2021-in-cp-ib-no-23-ctb-2019-64df0a87

## Summary

### Background

The Resolution Professional for Krishna Ferro Products Limited filed a petition under Section 19(2) read with Sections 70 and 71 of the IBC, 2016, seeking to hold the respondents liable for misconduct during the insolvency resolution process. The Resolution Professional had been appointed by the Tribunal and sent intimation to the corporate debtor to provide company details. The erstwhile directors of the corporate debtor failed to cooperate, leading the Resolution Professional to file IA No.163/CTB/2019, where the Tribunal directed the directors to cooperate. Despite the Tribunal's order, the respondents/erstwhile directors did not extend their help, preventing the petitioner from completing their work in time and hindering the auditor from submitting a full report.

## Facts

Mr. Manish Jain, the Resolution Professional for Krishna Ferro Products Ltd., filed a petition under Section 19(2) read with Sections 70 and 71 of the Insolvency and Bankruptcy Code, 2016, against the directors of Krishna Ferro Products Limited, namely Mr. Harikishan Agarwal, Mr. Manabendra Nth Sahoo, and Mr. Anand Chnadra Bhutia, alleging misconduct during the insolvency resolution process. The Resolution Professional was appointed by the Tribunal in I.A.No.25/CTB/2020 in CP.No.23/CTB/2019 dated 20.01.2020. The directors failed to cooperate with the Resolution Professional, despite a Tribunal order directing them to do so. This non-cooperation hindered the completion of the resolution process and the submission of a full audit report. The petition sought to punish the

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## Issues and analysis

### Issue 1: Whether the petition filed by the Resolution Professional is maintainable before the Adjudicating …

**Ratio:** Section 236 of the IBC stipulates that offenses under the IBC shall be tried by a Special

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**Reasoning:** The Tribunal reasoned that the relief sought by the applicant pertains to misconduct

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**Interpretation:** Section 236 of the IBC is interpreted as a bar on the Adjudicating Authority's

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**Application:** In this case, the petition was filed by the Resolution Professional, and the

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** MANISH…
- **Respondents:** Krishna Ferro…; Harikishan…

## Timeline

- **2020-01-20 — Tribunal…**: Tribunal passed an order in I.A.No.25/CTB/2020 in CP.No.23/CTB/2019 appointing the…
- **2022-02-24 — Order Res…**: The order was reserved…

## 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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