# In the matter of Tyson Retail Services Pvt. Ltd. IA-657-ND-2021 in Company Petition No. (IB) 2068 (ND) 2019

> NCLT judgment dated 2022-12-22. Citation: TCN-2022-NCLT-00082. The case involves an application filed under Section 66 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Dec 2022
- **Citation:** TCN-2022-NCLT-00082
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tyson-retail-services-pvt-ltd-ia-657-nd-2021-in-company-petition-no-ib-2068-nd-2-f753e015

## Summary

### Background

The case involves an application filed under Section 66 of the Insolvency and Bankruptcy Code, 2016, by the Resolution Professional (RP) of Tyson Retail Services Private Limited, seeking to record the Transactional Audit Report dated 20.01.2021, which reported fraudulent transactions amounting to Rs. 1,69,46,533. The RP also sought orders directing the directors, partners, employees, representatives, nominees, and agents of the Corporate Debtor (CD) to restore or contribute to the assets of the CD. The Corporate Insolvency Resolution Process (CIRP) was initiated against Tyson Retail Services Private Limited based on a company petition filed by Century Road Transport Pvt Ltd, which was admitted on 04.06.2020. An application for exclusion of 62 days from the CIRP period

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## Facts

Century Road Transport Pvt. Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against Tyson Retail Services Pvt. Ltd. under Section 9 of the IBC, 2016. The application was admitted on 04.06.2020. An application for exclusion of 62 days from the CIRP period was allowed. Shri Anil Matta was initially appointed as the Interim Resolution Professional (IRP), but his appointment was not confirmed by the Committee of Creditors (CoC). Shri Rajiv Bajaj was subsequently appointed as the Resolution Professional (RP). A transaction audit was conducted, revealing fraudulent transactions amounting to Rs. 1,69,46,533. The audit report highlighted various financial irregularities, including loans advanced to related parties, cash transactions exceeding permissible limits

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## Issues and analysis

### Issue 1: Whether the respondent/suspended board of directors of the corporate debtor have carried on the …

**Ratio:** The legal principle applied is that directors and management of a company have a

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**Reasoning:** The court reasoned that based on the special audit transaction report, large-scale

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**Interpretation:** This issue involves interpreting Section 66 of the IBC, which deals with

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**Application:** The court applied the principle to the facts of the case, noting that the

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## Parties

- **Judges:** SH. P.S.N.…; SH. RAHUL…
- **Appellants:** Rajiv B…
- **Respondents:** Tyson Retail…; Shiva…

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition No.…
- **2020-04-06 — CIRP Init…**: Company petition admitted and CIRP initiated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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