# In the matter of Topworth Tollways (Ujjain) Private Limited

> NCLT judgment dated 2023-08-11. Citation: TCN-2023-NCLT-02072. The case involves an application filed by Anuj Bajpai, the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 11 Aug 2023
- **Citation:** TCN-2023-NCLT-02072
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/topworth-tollways-ujjain-private-limited-64751a28

## Summary

### Background

The case involves an application filed by Anuj Bajpai, the Resolution Professional (RP) of Topworth Tollways (Ujjain) Private Limited, under Section 66 read with Section 25(j) of the Insolvency and Bankruptcy Code, 2016, against Surendra Lodha and Deepak Manohar Katakwar, both suspended directors of the Corporate Debtor. The RP sought to direct the respondents to contribute to the Corporate Debtor's account an amount of Rs. 23.37 crores, alleging fraudulent misuse of fiduciary powers. The application was based on findings from a transaction audit report that identified transactions intended to defraud creditors and siphon off money from the Corporate Debtor. The respondents contested the application, arguing that the forensic audit was flawed and overlooked crucial

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## Facts

Topworth Tollways (Ujjain) Private Limited, the Corporate Debtor, was undergoing CIRP. Anuj Bajpai was the Resolution Professional. A transaction audit was conducted, covering the period from 2018-10-10 to 2020-10-09. The audit revealed that Rs. 23.37 crores, meant to be deposited in an escrow account, was instead deposited in Jila Sahkari Bank. The RP alleged this was a fraudulent transaction under Section 66 of the IBC. The respondents, Surendra Lodha and Deepak Manohar Katakwar, were suspended directors of the Corporate Debtor. They argued that the opening of the Jila Sahkari Bank account was necessitated by the Corporate Debtor's NPA status and the non-cooperation of lenders in releasing funds from the escrow account. They claimed the funds were used for

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## Issues and analysis

### Issue 1: Whether the Applicant/RP has provided substantial proof to satisfy the ingredients of Section 66 of …

**Ratio:** Section 66 of the IBC deals with fraudulent or wrongful trading. To attract this section,

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**Reasoning:** The court found that the Applicant/RP relied solely on a forensic report to substantiate

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**Interpretation:** Section 66 requires a high degree of proof to establish fraudulent intent and

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**Application:** In this case, the court held that the forensic report relied upon by the

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## Parties

- **Judges:** Shyam Babu…; Kuldip Kumar…
- **Appellants:** Anuj Ba…
- **Respondents:** Topworth Tollways…; Surendra…

## Timeline

- **2016-03-31 — Suspension of Toll…**: MPRDC imposed a two-month suspension of…
- **2016-04-12 — Corporate Debtor's…**: The corporate debtor represented to MPRDC that toll collections were lower than…

## 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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