# In the matter of U. I. Beverages Private Limited IA No.711-2020 in CP (IB) No.97-Chd-Pb-2019

> NCLT judgment dated 2022-08-16. Citation: TCN-2022-NCLT-01363. The case pertains to an application filed by the Resolution Professional (RP) of U I Beverages…

- **Court:** NCLT
- **Order date:** 16 Aug 2022
- **Citation:** TCN-2022-NCLT-01363
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/u-i-beverages-private-limited-ia-no711-2020-in-cp-ib-no97-chd-pb-2019-930d9f34

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) of U I Beverages Private Limited under Section 19(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions to the former directors (Respondents No. 1 and 2) to provide the accounting data record of the Corporate Debtor in both soft and physical formats for the period from April 1, 2014, to March 31, 2017. CIRP proceedings had been initiated against U I Beverages Private Limited, the corporate debtor, when CP (IB) No. 97/Chd/Pb/2019 was admitted by the Adjudicating Authority vide order dated 02.03.2020.

## Facts

CIRP was initiated against U I Beverages Private Limited via CP (IB) No. 97/Chd/Pb/2019, admitted on 2020-03-02. The Resolution Professional (RP) filed IA No.711/2020 under Section 19(2) of the IBC, seeking directions to Rajnishpal Singh Dhaliwal and Shivrajpal Singh Dhaliwal, former directors of U I Beverages, to provide accounting data from 2014-04-01 to 2017-03-31. The RP claimed the directors failed to provide the data despite repeated requests, hindering the audit process. The directors contended the data was corrupted and unavailable. The CoC also noted the non-cooperation. The RP argued that the data was necessary for a detailed audit of transactions, especially considering potential fraudulent activities under sections 43, 45, 50, and 66 of the IBC. The

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## Issues and analysis

### Issue 1: Whether the former directors of the Corporate Debtor are obligated to provide the accounting data …

**Ratio:** Section 19(1) of the Insolvency and Bankruptcy Code, 2016, mandates that the suspended

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**Reasoning:** The court reasoned that even if the accounting data was corrupted, the hard copies of the

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**Interpretation:** Section 19(1) places a clear obligation on the suspended management to provide

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**Application:** The court applied the ratio of Section 19(1) to the facts of the case, holding

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Nilkamal L…
- **Respondents:** U I Beverages…

## Timeline

- **2019-01-01 — CP (IB) No.97/Chd/Pb/201…**: Filing of CP (IB)…
- **2020-03-02 — Admission of CP (IB)…**: CP (IB) No.97/Chd/Pb/2019 was admitted initiating CIRP against U I Beverages Private…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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