# In the matter of Tenny Jose Limited IA(IBC)-207-KOB-2022 in CP(IB)-25-KOB-2021

> NCLT judgment dated 2023-01-25. Citation: TCN-2023-NCLT-04890. The case involves an application filed under Section 50 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 25 Jan 2023
- **Citation:** TCN-2023-NCLT-04890
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tenny-jose-limited-iaibc-207-kob-2022-in-cpib-25-kob-2021-7015e09a

## Summary

### Background

The case involves an application filed under Section 50 of the Insolvency and Bankruptcy Code (IBC) 2016, seeking a declaration of extortionate credit transactions and the return of amounts. The Corporate Insolvency Resolution Process (CIRP) was initiated against Tenny Jose Limited following a petition filed by Korea Trade Insurance Corporation under Section 9 of the IBC on December 21, 2021. Prathap Pillai was appointed as the Resolution Professional (RP) after Mr. Krishna Raj served as the Interim Resolution Professional. The RP appointed M/s. Jackson Abraham Thekkekara as a forensic auditor, who submitted a report on June 4, 2022, which was then served to the former directors of the corporate debtor for their objections.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Tenny Jose Limited on December 21, 2021, based on a petition filed by Korea Trade Insurance Corporation. Prathap Pillai was appointed as the Resolution Professional (RP) on March 14, 2022, after Mr. Krishna Raj served as the Interim Resolution Professional. The RP appointed M/s. Jackson Abraham Thekkekara as a forensic auditor, who submitted a report on June 4, 2022. The RP filed an application under Section 50 of the IBC, alleging that Tenny Jose, the respondent, engaged in extortionate credit transactions by providing an unsecured loan to the corporate debtor with a high interest rate. The financial statements for 2016-2017 and 2017-2018 showed interest payments of Rs. 23.26 lakhs and Rs. 18.07

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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 NCLT relied on the Madras High Court judgment in Shahji Purushotom -vs- Union of

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**Interpretation:** The interpretation of Regulation 35A is that the timelines are guidelines

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**Application:** The applicant provided reasons for the delay in filing the application, and the

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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…**: Prathap Pillai appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 50 — Extortionate credit transactions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-50)

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