# In the matter of Radius Infra holdings Private Limited IA-1072-2023 in CP(IB) No.1123-MB-IV-2021

> NCLT judgment dated 2023-05-18. Citation: TCN-2023-NCLT-03275. This is an Interlocutory Application (IA-1072/2023) filed by the Resolution Professional,…

- **Court:** NCLT
- **Order date:** 18 May 2023
- **Citation:** TCN-2023-NCLT-03275
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/radius-infra-holdings-private-limited-ia-1072-2023-in-cpib-no1123-mb-iv-2021-0da03d71

## Summary

### Background

This is an Interlocutory Application (IA-1072/2023) filed by the Resolution Professional, Bhrugesh Amin, of Radius Infra Holdings Limited (Corporate Debtor) seeking directions against Mr. Sanjay Rajkumar Chhabriaa and Mr. Anil Nandlal Chhabriyaa (both Suspended Directors of the Corporate Debtor) for contribution of Rs. 1,17,93,242/- under Section 67 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) and imposition of fine under Sections 71, 72, and 73 of the Code. The Corporate Insolvency Resolution Process (CIRP) commenced for Radius Infra Holdings Private Limited on May 9, 2022, under Section 7 of the IBC. During CIRP, M/s Pipara & Co LLP was appointed to conduct a transaction audit of the Corporate Debtor's books.

## Facts

The Resolution Professional, Bhrugesh Amin, filed an application (IA-1072/2023) seeking directions against Sanjay Rajkumar Chhabriaa and Anil Nandlal Chhabriaa, both suspended directors of Radius Infra Holdings Limited (the Corporate Debtor), for contribution of Rs. 1,17,93,242/- under Section 67 of the I&B Code and imposition of fine under Sections 71, 72, and 73 of the Code. CIRP commenced on May 9, 2022. M/s Pipara & Co LLP conducted a transaction audit and filed a Forensic Audit Report on March 10, 2023, indicating preferential transactions to defraud creditors under Section 66 of the Code. The Corporate Debtor purchased a MERCEDES AMG G 63 for Rs. 2.45 crore in September 2021. The car's ownership changed to Mr. Juris Consillis. The car was removed from the

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## Issues and analysis

### Issue 1: Whether the suspended directors of the Corporate Debtor should be directed to contribute Rs. …

**Ratio:** Section 67 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) provides for the

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**Reasoning:** The court considered the findings of the transaction audit report, which indicated that

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**Interpretation:** The court interpreted Section 67 and Section 66 of the I&B Code to mean

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**Application:** Based on the transaction audit report and the lack of explanation from the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Bhrugesh…
- **Respondents:** Radius Infra…; Sanjay Rajkumar…

## Timeline

- **2022-05-09 — Commencement…**: Corporate Insolvency Resolution Process (CIRP) commenced for Radius Infra Holdings…
- **2023-03-10 — Forensic Audi…**: Transaction auditors filed their Forensic Audit Report, indicating preferential…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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