The case pertains to an application filed by the Resolution Professional (RP) of Sovereign Industries Limited, the Corporate Debtor (CD), under Section 66 of the Insolvency and Bankruptcy Code (IBC), 2016, against several respondents. The RP alleges that the respondents engaged in fraudulent transactions amounting to Rs. 29,48,05,000.00 during the period from 2021 to 2023. The CD was incorporated on 05.01.2009 for manufacturing sugar. The CIRP was initiated following an application under Section 7 of the IBC filed by Triveni Education Society. The RP's application seeks a declaration that the transactions are fraudulent, a direction for the respondents to transfer the amount to the CD's account, and an award for costs.
Sovereign Industries Limited (Corporate Debtor) was incorporated on 05.01.2009 to manufacture sugar. Triveni Education Society filed an application under Section 7 of the IBC, leading to the initiation of CIRP. The RP, Ritesh R. Mahajan, filed an application under Section 66 of the IBC alleging fraudulent transactions. The RP discovered that Rs. 29,48,05,000.00 was transferred to SLV Cements Ltd. and Lokapur Cements Ltd. shortly before the CIRP commencement date. These funds originated from the sale of a license to Ugar Sugar Works Ltd. The RP issued recovery notices to SLV Cements Ltd. and Lokapur Cements Ltd. The suspended directors failed to provide explanations or documents regarding these transactions, citing flood damage. The Transaction Auditor highlighted the
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Sovereign Industries…
Triveni Education…
The case pertains to an application filed by the Resolution Professional (RP) of Sovereign Industries Limited, the Corporate Debtor (CD), under Section 66 of the Insolvency and Bankruptcy Code (IBC), 2016, against several respondents. The RP alleges that the respondents engaged in fraudulent transactions amounting to Rs. 29,48,05,000.00 during the period from 2021 to 2023. The CD was incorporated on 05.01.2009 for manufacturing sugar. The CIRP was initiated following an application under Section 7 of the IBC filed by Triveni Education Society. The RP's application seeks a declaration that the transactions are fraudulent, a direction for the respondents to transfer the amount to the CD's account, and an award for costs.
Sovereign Industries Limited (Corporate Debtor) was incorporated on 05.01.2009 to manufacture sugar. Triveni Education Society filed an application under Section 7 of the IBC, leading to the initiation of CIRP. The RP, Ritesh R. Mahajan, filed an application under Section 66 of the IBC alleging fraudulent transactions. The RP discovered that Rs. 29,48,05,000.00 was transferred to SLV Cements Ltd. and Lokapur Cements Ltd. shortly before the CIRP commencement date. These funds originated from the sale of a license to Ugar Sugar Works Ltd. The RP issued recovery notices to SLV Cements Ltd. and Lokapur Cements Ltd. The suspended directors failed to provide explanations or documents regarding these transactions, citing flood damage. The Transaction Auditor highlighted the
…Sovereign Industries…
Triveni Education…