# In the matter of Mantena Laboratories Limited

> NCLT judgment dated 2024-02-06. Citation: TCN-2024-NCLT-02746. 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-02746
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mantena-laboratories-limited-6936b96d

## Summary

### Background

The case involves an application filed by Prasada Raju M.R.V, a Director in the suspended Board of Mantena Laboratories Limited (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, declare the Applicant as a necessary party for adjudication of I.A. No. 1468 of 2022, and direct the Resolution Professional to file a report confirming compliance with Regulation 39(1) regarding modification of resolution plans during the CIRP. The Corporate Debtor was admitted into CIRP on 06.08.2021, and the Respondent was appointed as Interim Resolution Professional and later as Resolution Professional. 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 certain directions against the Resolution Professional (RP). Mantena Laboratories Limited was admitted into CIRP on 06.08.2021, with the Respondent appointed as the RP. The Applicant sought access to Application IA No. 1468 of 2022 and related documents, claiming the RP allowed multiple modifications to Resolution Plans and failed to share CoC meeting minutes. The Applicant asserted that the RP committed material irregularities by omitting stocks worth 13 Crores. The RP denied these allegations, stating that the Applicant never submitted details regarding the stock and that the valuation of the CD's assets was conducted as per

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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:** The court interpreted that the Applicant's dual role compromised his capacity

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**Application:** The court applied the principle of 'conflict of interest' to the specific facts

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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 Limited was admitted into Corporate Insolvency Resolution Process…
- **2021-08-06 — Appointment…**: Sri. Vamsi Kambhammettu was appointed as…

## 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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