# In the matter of Savute Textiles Private Limited

> NCLT judgment dated 2024-04-25. Citation: TCN-2024-NCLT-01592. The case involves an application filed by Mr. Nazeeb Peediyakkal Abdul Salim, who was arrayed…

- **Court:** NCLT
- **Order date:** 25 Apr 2024
- **Citation:** TCN-2024-NCLT-01592
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/savute-textiles-private-limited-a764a9ff

## Summary

### Background

The case involves an application filed by Mr. Nazeeb Peediyakkal Abdul Salim, who was arrayed as Respondent No. 3 in IA(IBC)/97/KOB/2023 under Section 60(5) & 66 of the IBC, 2016 read with Rule 11 of the NCLT Rules, 2016. The applicant seeks to delete and strike off his name from the array of parties in IA(IBC)/97/KOB/2022 in CP(IB)/45/KOB/2021, arguing that he is neither a necessary nor a proper party.

## Facts

Mr. Nazeeb Peediyakkal Abdul Salim, formerly a director of M/s. Savute Textiles Private Limited, was arrayed as Respondent No. 3 in IA(IBC)/97/KOB/2023. He had been appointed as an Additional Director of the Corporate Debtor on 2015-03-26 for a one-year term but claims he did not have the opportunity to participate in the affairs of the Corporate Debtor. Consequently, he submitted his resignation to Respondent Nos. 2 and 3, directors of the Corporate Debtor, via email on 2021-11-10 and speed post on 2021-11-09. He subsequently filed Form DIR-11 with the ROC, receiving acknowledgment from the Ministry of Corporate Affairs on 2022-03-16. He contends that he should not be held liable for the actions of Respondent Nos. 2, 3, 4, 10, 11, 12, and 13. The applicant seeks to be

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## Issues and analysis

### Issue 1: Whether the name of Respondent No. 3 should be deleted from the array of parties in …

**Ratio:** The court has the power to remove a party from the array of parties if they are neither a

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**Reasoning:** The court found that the applicant's name was not mentioned anywhere in the records of

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**Interpretation:** The court interpreted Section 60(5) & 66 of the IBC, 2016 read with Rule 11

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**Application:** Based on the facts presented, the court determined that the applicant was not a

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## Parties

- **Judges:** Shyam Babu…; T Krishna…
- **Appellants:** Nazeeb Peediyakkal…
- **Respondents:** M/s. Savute…; K. EASWARA…

## Timeline

- **2015-03-26 — Appointment as…**: Mr. Nazeeb Peediyakkal Abdul Saleem was appointed as an Additional Director of the…
- **2021-11-09 — Resignation Le…**: Mr. Nazeeb Peediyakkal Abdul Saleem sent his resignation letter to the Respondent Nos. 2…

## 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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