# In the matter of SPG Multi Trade Private Limited

> NCLT judgment dated 2024-08-08. Citation: TCN-2024-NCLT-00851. The case involves two Interlocutory Applications (IAs) filed in a Company Petition (CP) related…

- **Court:** NCLT
- **Order date:** 8 Aug 2024
- **Citation:** TCN-2024-NCLT-00851
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/spg-multi-trade-private-limited-5db6d442

## Summary

### Background

The case involves two Interlocutory Applications (IAs) filed in a Company Petition (CP) related to insolvency proceedings. IA 1373 of 2021 was filed by the Liquidator seeking orders under Section 66 of the Insolvency and Bankruptcy Code (IBC) to direct respondents to pay sums for benefits received from the Corporate Debtor, alleging fraudulent transactions. IA 3237 of 2024 was filed by Prince Goyal & Ors. (Respondents in IA 1373) seeking dismissal of IA 1373, arguing it was not maintainable under Section 66 of the IBC.

## Facts

The Liquidator filed IA 1373/2021 seeking orders under Section 66 of IBC, alleging fraudulent transactions by the respondents. The application sought to recover amounts related to various transactions, including: non-deposited cheques totaling Rs. 90 crores, journal entries adjusting balances, sale of a BMW car below market value, undocumented transportation charges, overdraft facilities obtained without NOC, and sales without actual movement of goods. The respondents argued that the transactions were carried out with the knowledge of the financial creditor, were not fraudulent, and were in the ordinary course of business. They also contended that the Liquidator had not made out a case of fraud as required under Section 66 of the IBC. The Corporate Debtor had portrayed

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## Issues and analysis

### Issue 1: Whether Interlocutory Application No.1373 of 2021 filed by the Respondent under Section 66 of IBC …

**Ratio:** The Tribunal had allowed the withdrawal of IA 296/2021 on the ground of filing of revised

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**Reasoning:** The Tribunal found that the Liquidator had sought withdrawal of IA 296 of 2021 in IA 1373

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**Interpretation:** The Tribunal interpreted that the withdrawal as permitted by this Tribunal was

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**Application:** The Tribunal found no merit in the contention of the Applicant in IA 3237 of

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Prince…
- **Respondents:** SPG Multi Trade…; Modilal Dhanraj…

## Timeline

- **2021-01-01 — Filing of IA 1373 of…**: The Liquidator filed Interlocutory Application IA 1373 of 2021 in Petition CP No. 3419 of…
- **2024-01-01 — Filing of IA 3237 of…**: Prince Goyal & Ors. filed Interlocutory Application IA 3237 of 2024 under Company…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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