# In the matter of Stockflow Express Pvt. Ltd. IA No. 2153-2020 in Company Petition No. 2414-ND-2021

> NCLT judgment dated 2022-01-21. Citation: TCN-2022-NCLT-04382. The Interim Resolution Professional (IRP) filed a petition under Section 66 of the Insolvency…

- **Court:** NCLT
- **Order date:** 21 Jan 2022
- **Citation:** TCN-2022-NCLT-04382
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stockflow-express-pvt-ltd-ia-no-2153-2020-in-company-petition-no-2414-nd-2021-29243d37

## Summary

### Background

The Interim Resolution Professional (IRP) filed a petition under Section 66 of the Insolvency and Bankruptcy Code, 2016, seeking directions against the respondents (ex-directors/promoters) to compensate the corporate debtor for losses incurred due to fraudulent transactions. The IRP also sought referral of the matter to the IBBI under Section 236 of the IBC, 2016. The IRP's application was based on the ex-directors' alleged non-cooperation, hiding information about share sales, writing off debts to defraud creditors, starting an identical business through a related entity, and receiving cash from debtors without proper accounting.

## Facts

Aargus Global Logistics Pvt. Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against itself. The Interim Resolution Professional (IRP) was appointed on 26.11.2019. The Corporate Debtor was previously known as Committed Worldwide Express Pvt Ltd and later changed its name to Stockflow Express Pvt Ltd on 26-07-2019. Before December 2018, the company had five directors: Nitin Bharal, Narendra Bisht, Rajeev Sharma, Yashpal Arora, and Sujeet Kumar Chaudhary. The first four were also promoters and 100% shareholders of Stockflow Express Pvt Ltd. Shiv Kumar Chaturvedi was appointed as a director on 27-12-2018. The first four directors resigned on 31-12-2018. Sujeet Chaudhary passed away in August 2019, leaving Shiv Kumar Chaturvedi as the sole director. The

…

## Issues and analysis

### Issue 1: Whether the ex-directors/promoters of the Corporate Debtor engaged in fraudulent transactions …

**Ratio:** Section 66 of the IBC, 2016, addresses fraudulent trading or wrongful trading. It

…

**Reasoning:** The court reasoned that the ex-directors' actions, including selling shares to a company

…

**Interpretation:** The court interpreted Section 66 of the IBC to encompass situations where

…

**Application:** The court applied Section 66 to the facts of the case, finding that the

…

## Parties

- **Judges:** ABNI RANJAN KUMAR…; AVINASH K.…
- **Appellants:** Aargus Global…
- **Respondents:** Stockflow Express…; STOCKFLOW EXPRESS…; +1 more

## Timeline

- **2017-10-20 — Shareholdin…**: The four promoters sold their 100% share-holding to a related concern Committed Cargo…
- **2018-03-31 — Shareholding R…**: Committed Cargo Care Ltd sold a part of its share-holding in the corporate debtor,…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stockflow-express-pvt-ltd-ia-no-2153-2020-in-company-petition-no-2414-nd-2021-29243d37