# In the matter of Srei Infrastructure Finance Limited IA(I.B.C)-75(KB)2022 in CP (IB) No. 295-KB-2021

> NCLT judgment dated 2022-01-25. Citation: TCN-2022-NCLT-04377. The case involves an application related to the Corporate Insolvency Resolution Process (CIRP)…

- **Court:** NCLT
- **Order date:** 25 Jan 2022
- **Citation:** TCN-2022-NCLT-04377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/srei-infrastructure-finance-limited-iaibc-75kb2022-in-cp-ib-no-295-kb-2021-3dbdf1c6

## Summary

### Background

The case involves an application related to the Corporate Insolvency Resolution Process (CIRP) against SREI Infrastructure Finance Limited. An audit was conducted by KPMG at the behest of the Consortium of Banks. The central issue is whether the audit can continue after the commencement of CIRP against the Corporate Debtor, which was allowed vide order dated 08/10/2021 in CP (IB) No. 295/KB/2021. IA 75/KB/2022 was put on Board by way of an Additional list at the instance of the applicant who cited extreme urgency in hearing the matter.

## Facts

The Reserve Bank of India (RBI) initiated Corporate Insolvency Resolution Process (CIRP) against SREI Infrastructure Finance Limited. KPMG conducted a forensic audit at the instance of the Consortium of Banks. The CIRP was allowed vide order dated 08/10/2021 in CP (IB) No. 295/KB/2021. The key fact is whether the audit initiated by KPMG can continue after the commencement of CIRP. IA 75/KB/2022 was filed citing extreme urgency. The Committee of Creditors (CoC) and the Administrator are also involved in the proceedings. KPMG Assurance and Consulting Services LLP (Respondent No. 5) was not represented during the hearing.

## Issues and analysis

### Issue 1: Whether the forensic audit conducted by KPMG at the instance of the Consortium of Banks can …

**Ratio:** The legal principle involves balancing the need for a forensic audit with the provisions

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**Reasoning:** The court is considering arguments from various parties, including the applicant (RBI),

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**Interpretation:** The issue requires interpreting the scope and applicability of the IBC

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**Application:** The court will apply the legal principles and interpretations to the specific

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Reserve Bank of…
- **Respondents:** SREI Infrastructur…

## Timeline

- **2021-10-08 — Order for CIRP…**: Order was passed allowing the commencement of Corporate Insolvency Resolution Process…
- **2022-01-25 — Hearing…**: Hearing was held on 25th January, 2022, at 10:30 A.M. to consider IA 75/KB/2022 regarding…

## 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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