The case involves M/s Sri Vinayaka Paper and Boards Limited, which underwent Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation. The liquidator filed applications (I.A. Nos. 38/2021, 39/2021, and 40/2021) under Section 66 R/w 60(5)(c) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking directions against the erstwhile management/directors for allegedly making fraudulent transactions, misusing company funds, and engaging in wrongful trading. The applications were based on a forensic audit report that highlighted irregularities in the company's financial dealings, including writing off bad debts, adjusting sundry debtor balances, and diverting funds.
M/s Sri Vinayaka Paper and Boards Limited underwent CIRP and liquidation. The liquidator filed applications under Section 66 of IBC, alleging fraudulent transactions by the former management. The allegations included writing off Rs. 42.25 crores as bad debt, adjusting Rs. 46.36 crores of sundry debtor balances, and crediting Rs. 13.37 crores to a non-TRA account. The liquidator claimed that the respondents awarded contracts to Manish Industries Private Limited and Latha Industries without sufficient infrastructure, diverted funds, and falsified books. The respondents denied the allegations, stating that the transactions were legitimate and that the liquidator failed to provide evidence of fraud. They also argued that the applications were filed with a significant delay
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The case involves M/s Sri Vinayaka Paper and Boards Limited, which underwent Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation. The liquidator filed applications (I.A. Nos. 38/2021, 39/2021, and 40/2021) under Section 66 R/w 60(5)(c) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking directions against the erstwhile management/directors for allegedly making fraudulent transactions, misusing company funds, and engaging in wrongful trading. The applications were based on a forensic audit report that highlighted irregularities in the company's financial dealings, including writing off bad debts, adjusting sundry debtor balances, and diverting funds.
M/s Sri Vinayaka Paper and Boards Limited underwent CIRP and liquidation. The liquidator filed applications under Section 66 of IBC, alleging fraudulent transactions by the former management. The allegations included writing off Rs. 42.25 crores as bad debt, adjusting Rs. 46.36 crores of sundry debtor balances, and crediting Rs. 13.37 crores to a non-TRA account. The liquidator claimed that the respondents awarded contracts to Manish Industries Private Limited and Latha Industries without sufficient infrastructure, diverted funds, and falsified books. The respondents denied the allegations, stating that the transactions were legitimate and that the liquidator failed to provide evidence of fraud. They also argued that the applications were filed with a significant delay
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