# In the matter of Southern Online Bio Technologies Ltd. IA(IBC)-320-2021 in CP(IB) No.343-7-HDB-2018

> NCLT judgment dated 2022-06-02. Citation: TCN-2022-NCLT-02464. The case involves an application filed by Dr. Devaiah Pagidipati, who acquired Southern Online…

- **Court:** NCLT
- **Order date:** 2 Jun 2022
- **Citation:** TCN-2022-NCLT-02464
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/southern-online-bio-technologies-ltd-iaibc-320-2021-in-cpib-no343-7-hdb-2018-2b20f75c

## Summary

### Background

The case involves an application filed by Dr. Devaiah Pagidipati, who acquired Southern Online Bio as a going concern under liquidation, seeking directions to Bank of India (Respondent No. 1) to refund income tax refunds and interest amounting to Rs. 26,30,889/- and Rs. 1,43,438/- respectively. The Corporate Debtor, Southern Online Bio-Technologies Ltd, was undergoing CIRP initiated by Bank of India under Section 7 of IBC, 2016. Due to the failure of resolution plans, the COC resolved for liquidation, and the Tribunal ordered liquidation. The applicant became the successful bidder in the e-auction and took over the Corporate Debtor as a going concern. The applicant requested the respondent to refund the income tax refunds, but the respondent appropriated them. The

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## Facts

Dr. Devaiah Pagidipati acquired Southern Online Bio as a going concern under liquidation after being the successful bidder in an e-auction. The Corporate Debtor, Southern Online Bio-Technologies Ltd, was undergoing CIRP initiated by Bank of India. The COC resolved for liquidation due to the failure of resolution plans. The applicant filed an application seeking directions to Bank of India (Respondent No. 1) to refund income tax refunds and interest amounting to Rs. 26,30,889/- and Rs. 1,43,438/- respectively, which were received into the Corporate Debtor's bank account maintained with Respondent No. 1. The applicant also sought directions to release the security interest on the assets of the Corporate Debtor and remove the Corporate Debtor's name from the defaulters

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## Issues and analysis

### Issue 1: Whether the reliefs sought for by the …

**Ratio:** The Tribunal has the power to grant reliefs as deemed fit and necessary in the interest

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**Reasoning:** The Tribunal considered the arguments of both parties and the records presented. It found

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**Interpretation:** The Tribunal interpreted the provisions of the IBC and the previous orders

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**Application:** The Tribunal applied the ratio to the specific facts of the case, considering

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Devaiah Pag…
- **Respondents:** Southern Online -…; Bank of…

## Timeline

- **2018-10-05 — Admission of…**: Tribunal admitted the petition filed by Bank of India under Section 7 of IBC in CP (IB)…
- **2019-06-25 — Resolution for…**: The COC resolved for liquidation of the…

## 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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