# In the matter of Tenny Jose Limited IA(IBC)-205-KOB-2022 in CP(IB)-25-KOB-2021

> NCLT judgment dated 2023-01-25. Citation: TCN-2023-NCLT-04897. The case involves an application filed under Section 45 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 25 Jan 2023
- **Citation:** TCN-2023-NCLT-04897
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tenny-jose-limited-iaibc-205-kob-2022-in-cpib-25-kob-2021-65a06b1f

## Summary

### Background

The case involves an application filed under Section 45 of the Insolvency and Bankruptcy Code (IBC) 2016, seeking to address an allegedly undervalued transaction and recover the amount. The Corporate Insolvency Resolution Process (CIRP) was initiated against Tenny Jose Limited, with Korea Trade Insurance Corporation filing the initial petition under Section 9 of the IBC. An interim resolution professional was appointed, followed by the appointment of a resolution professional. A forensic audit was conducted, revealing that the respondents, the suspended Board of Directors of the Corporate Debtor, deliberately engaged in transactions to defraud creditors. The application specifically points to the sale of two cars at prices significantly below their market value.

## Facts

1. CIRP was initiated against Tenny Jose Limited based on a petition filed by Korea Trade Insurance Corporation under Section 9 of the IBC.
2. Mr. Krishna Raj was initially appointed as the interim resolution professional, followed by the appointment of the applicant as the resolution professional on 2022-03-14.
3. A forensic audit was conducted by M/s. Jackson Abraham Thekkekara, Chartered Accountant, who submitted a report on 2022-06-04, revealing alleged fraudulent transactions by the Corporate Debtor's Board of Directors.
4. The application under Section 45 of the IBC was filed on 2022-07-15, alleging that the respondents sold two cars at undervalued prices.
5. The cars in question were a Benz ML250 CDI 2012 model sold on 2021-10-31 for Rs.5,08,598 and a BMW 55Series

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## Issues and analysis

### Issue 1: Whether the application …

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

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**Reasoning:** The court reasoned that the timelines under Regulation 35A are directory because no

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**Interpretation:** The interpretation of Regulation 35A is crucial, as it determines whether the

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**Application:** In this case, the court implicitly condones the delay by proceeding to examine

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Prathap P…
- **Respondents:** Tenny Jose…; Tenny…

## Timeline

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

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 45 — Avoidance of undervalued transactions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-45)

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