# In the matter of Shalfeyo Industries Pvt. Ltd.

> NCLT judgment dated 2023-08-11. Citation: TCN-2023-NCLT-02068. The Interim Application (IA No. 411/JPR/2022) was filed by the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 11 Aug 2023
- **Citation:** TCN-2023-NCLT-02068
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shalfeyo-industries-pvt-ltd-a950d27f

## Summary

### Background

The Interim Application (IA No. 411/JPR/2022) was filed by the Resolution Professional (RP) of M/s Shalfeyo Industries Private Limited (Corporate Debtor) under Section 19 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority had admitted the application under Section 9 of the IBC filed by the Operational Creditor against the Corporate Debtor on 16.08.2022, and Mr. Umang Jain was appointed as the Interim Resolution Professional (IRP). The applicant submitted that a copy of the CIRP order was sent via email and letter dated 20.08.2022, intimating the initiation of CIRP and seeking information regarding the Corporate Debtor's affairs. The suspended directors, specifically Mr. Deepak Modi, responded via email on 27.08.2022, alleging misconduct by the IRP

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## Facts

M/s Prime Implex initiated Corporate Insolvency Resolution Process (CIRP) against M/s Shalfeyo Industries Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 16.08.2022, and Mr. Umang Jain was appointed as the Interim Resolution Professional (IRP). The IRP sent a copy of the CIRP order and a letter dated 20.08.2022 to the Corporate Debtor, seeking necessary information. Mr. Deepak Modi, one of the suspended directors, responded on 27.08.2022, alleging misconduct by the IRP and failing to provide the required documentation. The IRP sent a reminder email on 27.08.2022, requesting the handover of assets and updated books of accounts, but the suspended directors did not comply adequately, providing only scrap stock and

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## Issues and analysis

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

**Ratio:** Section 19(1) of the IBC mandates that the personnel of the Corporate Debtor, its

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**Reasoning:** The Adjudicating Authority noted that the suspended directors were given numerous

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**Interpretation:** Section 19(1) of the IBC is interpreted to mean that all individuals associated

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**Application:** The Adjudicating Authority applied the ratio of Section 19(1) to the facts of

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## Parties

- **Judges:** Deep Chandr…; ATUL CHAT…
- **Appellants:** M/S PRIME…
- **Respondents:** M/s Shalfeyo…; M/S SHALFEYO…

## Timeline

- **2022-08-16 — CIRP Ord…**: Application under Section 9 of IBC…
- **2022-08-20 — CIRP Initiation…**: Copy of CIRP Order sent to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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