# In the matter of Rahi Electronics Private Limited

> NCLT judgment dated 2024-10-29. Citation: TCN-2024-NCLT-00327. The case involves an application filed under Section 33 r.w. 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 29 Oct 2024
- **Citation:** TCN-2024-NCLT-00327
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rahi-electronics-private-limited-d3c099b3

## Summary

### Background

The case involves an application filed under Section 33 r.w. 60(5) of the Insolvency and Bankruptcy Code, 2016, by Mr. Shyam Sunder Kasera, the Resolution Professional (RP) of Rahi Electronics Private Limited. The RP sought several reliefs, including setting aside the order dated 18.02.2019, directing Respondents 2 and 3 to pay the outstanding professional fees, determining liquidation costs, and interim reliefs. The Corporate Insolvency Resolution Process (CIRP) was initiated based on a petition filed by the Corporate Applicant (Respondent No. 1) under Section 10 of the Code. The Committee of Creditors (CoC) was formed, and several meetings were held. A forensic audit revealed preferential and undervalued transactions. The CoC ultimately decided to liquidate the

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## Facts

Rahi Electronics Private Limited (Respondent No. 1) initiated Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. Mr. Vimal Agarwal was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Shyam Sunder Kasera. Thane Bharat Sahakari Bank Limited (Respondent No. 4) was the sole financial creditor, with admitted claims of Rs. 5,21,75,866. A forensic audit revealed preferential transactions and undervalued transactions by the Corporate Debtor. The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor due to the absence of a resolution plan and concerns about abuse of the legal process. The total loan outstanding of both companies (Corporate Debtor and Rahi

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## Issues and analysis

### Issue 1: Whether the Tribunal should recall the CIRP order …

**Ratio:** The power to recall a judgment is inherent in the Tribunal and is preserved by Rule 11 of

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**Reasoning:** The court reasoned that the CIRP order was passed based on the facts of the case and

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**Interpretation:** The interpretation of the power to recall an order involves balancing the need

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**Application:** In this case, the court applied the ratio by finding that the initial CIRP

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Shyam Sunder…
- **Respondents:** Rahi Electronics…

## Timeline

- **2018-02-18 — CIRP Commen…**: The CIRP of Corporate Debtor…
- **2019-02-21 — Public Annou…**: Mr. Vimal Agarwal, the Interim Resolution Professional (IRP) published a Public…

## 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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