# In the matter of Maximum Synthetics Pvt. Ltd. {IA No. 275-JPR-2019 in CP No. (IB)-17-7-JPR-2018]

> NCLT judgment dated 2024-02-22. Citation: TCN-2024-NCLT-02483. The case involves an application (IA No. 275/JPR/2019) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 22 Feb 2024
- **Citation:** TCN-2024-NCLT-02483
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/maximum-synthetics-pvt-ltd-ia-no-275-jpr-2019-in-cp-no-ib-17-7-jpr-2018-01516c60

## Summary

### Background

The case involves an application (IA No. 275/JPR/2019) filed by the Resolution Professional (RP) of M/s Maximum Synthetics Pvt. Ltd. ('Corporate Debtor') under Section 19(2) of the Insolvency and Bankruptcy Code, 2016 ('IBC'). The RP sought directions from the Adjudicating Authority to compel the suspended directors of the Corporate Debtor to provide necessary documents, records, information, and cooperation for carrying out statutory duties under the IBC. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by Reliance Commercial Finance Limited ('Financial Creditor') under Section 7 of the IBC. An order for Liquidation was passed by this Authority on 09.02.2021 and Mr. Satyendra Prasad Khorania was appointed as the Liquidator.

## Facts

Reliance Commercial Finance Limited initiated Corporate Insolvency Resolution Process (CIRP) against M/s Maximum Synthetics Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code (IBC). Mr. Rajiv Sharma was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Satyendra Prasad Khorania. The IRP requested documents and information from the Corporate Debtor's directors, but received no response. The Applicant (RP) intimated the replacement of the Resolution Professional and requested the Respondents to provide records, books of accounts, and other documents. Reminder emails were sent, but no information was provided. The RP found discrepancies in the stock levels at the production site. The Respondents claimed they provided

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## Issues and analysis

### Issue 1: Whether the suspended directors of the Corporate Debtor should be directed to provide necessary …

**Ratio:** Section 19 of the IBC casts an obligation on the personnel and promoters of the Corporate

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**Reasoning:** The court reasoned that the provisions of Section 19 of the Code cast an obligation on

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**Interpretation:** Section 19 of the IBC mandates cooperation from the Corporate Debtor's

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**Application:** The court applied the provisions of Section 19 and Section 35 to the facts of

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Respondents:** M/S MAXIMUM…; KAILASH C…

## Timeline

- **2018-07-07 — CP No. (IB)- 17/7/JPR/20…**: CP No. (IB)- 17/7/JPR/20…
- **2019-05-17 — CIRP Ord…**: CIRP of the Corporate…

## 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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