# In the matter of Shirpur Power Pvt. Ltd.

> NCLT judgment dated 2024-02-07. Citation: TCN-2024-NCLT-02740. The case involves an application filed by the liquidator of Shirpur Power Pvt Ltd, Dushyant…

- **Court:** NCLT
- **Order date:** 7 Feb 2024
- **Citation:** TCN-2024-NCLT-02740
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shirpur-power-pvt-ltd-6f11cdfb

## Summary

### Background

The case involves an application filed by the liquidator of Shirpur Power Pvt Ltd, Dushyant Dave, under Section 19(2) read with Section 34(3) of the Insolvency & Bankruptcy Code, 2016, and Regulation 9(1) of the IBBI (Liquidation Process) Regulations, 2016. The liquidator sought directions against the suspended management to provide assistance and cooperation during the liquidation period. The application was prompted by the non-cooperation of the respondents in providing necessary documents for a transaction audit. The transaction audit was initiated based on observations made by auditors regarding adjustments with related parties and other vendors. The liquidator engaged BDO LLP to conduct the transaction audit for the period 01.04.2011 to 31.03.2018. The

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## Facts

The liquidator of Shirpur Power Pvt Ltd, Dushyant Dave, filed an application seeking directions against the respondents for non-cooperation in providing documents required for a transaction audit. The transaction audit was initiated based on observations made by auditors regarding adjustments with related parties (Sintex Infra Projects Limited) and other vendors. The auditors' report, dated 28.06.2021, highlighted these adjustments. The review period for the transaction audit was extended from 01.04.2011 to 31.03.2018, following a decision in the 5thSCC meeting on 16.11.2021. The liquidator requested documents from Respondent No. 18, who initially provided photos indicating possession of the documents and an approximate amount for printing charges. However, when

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## Issues and analysis

### Issue 1: Whether the respondents are obligated to provide the documents and information sought by the …

**Ratio:** Section 19(2) of the IBC mandates that the personnel of the corporate debtor, including

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**Reasoning:** The court reasoned that the liquidator has a statutory duty to take control of the assets

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**Interpretation:** Section 19(2) and 34(3) of the IBC are interpreted to impose a mandatory

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**Application:** The court applied the ratio to the facts of the case by directing the

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Dushyant…
- **Respondents:** Shirpur Power Pvt…; Bijaya Kushasan…

## Timeline

- **2018-03-05 — Review Perio…**: Start date of the review…
- **2020-03-04 — CIRP Init…**: Corporate Debtor…

## 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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