# In the matter of Tenny Jose Limited IA(IBC)-204-KOB-2022 in CP(IB)-25-KOB-2021

> NCLT judgment dated 2023-01-25. Citation: TCN-2023-NCLT-04887. The case involves an application filed under Section 66 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 25 Jan 2023
- **Citation:** TCN-2023-NCLT-04887
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tenny-jose-limited-iaibc-204-kob-2022-in-cpib-25-kob-2021-cdfa20fb

## Summary

### Background

The case involves an application filed under Section 66 of the Insolvency and Bankruptcy Code (IBC) 2016, concerning fraudulent transactions and the return of amounts by the respondents. The Corporate Insolvency Resolution Process (CIRP) was initiated against Tenny Jose Limited following a petition filed under Section 9 of the IBC by Korea Trade Insurance Corporation. The resolution professional (RP) appointed a forensic auditor who identified fraudulent transactions by the respondents, who are the former directors of the corporate debtor. The RP then filed an application seeking the return of funds.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Tenny Jose Limited based on a petition filed by Korea Trade Insurance Corporation under Section 9 of the IBC. Mr. Krishna Raj was initially appointed as the interim resolution professional, and later the applicant, Prathap Pillai, was appointed as the resolution professional. The RP appointed M/s. Jackson Abraham Thekkekara, a Chartered Accountant, as a forensic auditor to investigate potential fraudulent transactions. The forensic auditor submitted a report indicating that the respondents, who were the directors of Tenny Jose Limited, had engaged in fraudulent transactions to defraud the creditors. These transactions included increasing sales and purchases, diverting funds from letters of credit,

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## Issues and analysis

### Issue 1: Whether the application …

**Ratio:** Regulation 35A of the Insolvency and Bankruptcy Board of India and (Insolvency Resolution

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**Reasoning:** The court reasoned that the timeline mentioned in Regulation 35-A of Insolvency

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**Interpretation:** The court interpreted Regulation 35A as directory, meaning that non-compliance

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**Application:** The court found that the applicant came to know about the fraudulent trading of

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Prathap P…
- **Respondents:** Tenny Jose…; Tenny…
- **Advocates:** Harikumar.…; Akhil S…; +2 more

## Timeline

- **2021-12-21 — CIRP Ord…**: Corporate debtor was…
- **2022-03-14 — Appointment…**: The applicant was appointed as…

## 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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