# In the matter of Mantena Laboratories Limited

> NCLT judgment dated 2024-02-06. Citation: TCN-2024-NCLT-02755. The case involves an application filed by Prasada Raju M.R.V, a Director in the suspended Board…

- **Court:** NCLT
- **Order date:** 6 Feb 2024
- **Citation:** TCN-2024-NCLT-02755
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mantena-laboratories-limited-4db17b68

## Summary

### Background

The case involves an application filed by Prasada Raju M.R.V, a Director in the suspended Board of Mantena Laboratories Limited (the Corporate Debtor), under Section 60(5) of the IBC read with Rule 11 of the NCLT Rules. The applicant sought directions for the Respondent (Resolution Professional) to furnish Application IA No. 1468 of 2022 and related documents, including the Resolution Plan of the Successful Resolution Applicant (SRA). The applicant also sought to be declared a necessary party for the adjudication of I.A. No. 1468 of 2022 and to direct the Resolution Professional to file a report confirming compliance with Regulation 39(1) and allowing Resolution Applicants to modify plans during CIRP. The Corporate Debtor was admitted into CIRP on 06.08.2021, and the

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## Facts

Prasada Raju M.R.V., a Director in the suspended Board of Mantena Laboratories Limited (Corporate Debtor), filed an application seeking access to Resolution Plans submitted by other Resolution Applicants. Mantena Laboratories Limited was admitted into CIRP on 06.08.2021, with the Respondent appointed as IRP and later RP. The Applicant claimed to have provided all necessary information to the Respondent regarding stock, intermediaries, and raw materials. The Applicant also submitted a Resolution Plan, which was rejected by the CoC on 03.12.2022. The Applicant alleged that the Respondent allowed Resolution Applicants to modify their plans multiple times and did not share minutes of CoC meetings. The Respondent denied these allegations, stating that the applicant never

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## Issues and analysis

### Issue 1: Whether the Applicant, being a director in the suspended board and a resolution applicant, is …

**Ratio:** The principle of 'conflict of interest' is a wider equitable, legal, and moral principle

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**Reasoning:** The court reasoned that the Applicant's dual role as a suspended director and a

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**Interpretation:** This interpretation emphasizes the importance of preventing conflicts of

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**Application:** The court applied this principle to the Applicant, who was both a suspended

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Prasada Raj…
- **Respondents:** Mantena Laboratori…; Sri. Vamsi…

## Timeline

- **2021-08-06 — Admission in…**: Mantena Laboratories Ltd was admitted…
- **2021-11-24 — Form-G Publ…**: Respondent published Form-G and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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