# In the matter of Vikas Procon Private Limited

> NCLT judgment dated 2024-09-05. Citation: TCN-2024-NCLT-00666. The case involves an application (I.A 2047/2024) filed by Tejendrakumar Patel & Ors. seeking…

- **Court:** NCLT
- **Order date:** 5 Sept 2024
- **Citation:** TCN-2024-NCLT-00666
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vikas-procon-private-limited-a8d1443a

## Summary

### Background

The case involves an application (I.A 2047/2024) filed by Tejendrakumar Patel & Ors. seeking several reliefs, including the removal of the existing Resolution Professional (Respondent no. 1), appointment of a new independent Resolution Professional, verification of claims of the Respondents, forensic audit of the Corporate Debtor's accounts, and setting aside the admission of claims of Respondent nos. 4 to 20 based on alleged forged promissory notes. The application also challenges the inclusion of related party claims in the Committee of Creditors (CoC). The unsecured creditors' claims arise from unsecured loans reflected as 'other long-term liabilities' in the Corporate Debtor's financials since 2016-2017. The key issue revolves around the admissibility of

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## Facts

The Corporate Debtor is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Tejendrakumar Patel & Ors. filed I.A 2047/2024 seeking the removal of the existing Resolution Professional, appointment of a new one, verification of claims, forensic audit, and setting aside the admission of claims of certain respondents based on alleged forged promissory notes. The Applicant claims that the Committee of Creditors (CoC) is comprised of family members and relatives of the suspended management and ex-directors of the Corporate Debtor. The Applicant also alleges that the claims of some creditors are based on fabricated promissory notes with a 24% interest rate, which is not reflected in the Corporate Debtor's accounts. The

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## Issues and analysis

### Issue 1: Whether the unsecured creditors can be defined as 'Related Parties' under Section 5(24) of the …

**Ratio:** Section 5(24) of the Insolvency and Bankruptcy Code, 2016 defines 'related party' in

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**Reasoning:** The Tribunal considered the submissions of the Resolution Professional and the provisions

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**Interpretation:** The Tribunal interpreted Section 5(24) of the IBC to mean that the relationship

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**Application:** Based on the submissions and the provisions of Section 5(24) of the IBC, the

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Tejendrakumar…
- **Respondents:** Vikas Procon…; Prabhat…

## Timeline

- **2023-04-19 — Company Petition…**: The Company Petition was…
- **2023-07-17 — Tribunal…**: The Tribunal held that the interest claimed by the Applicants and admitted by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(24) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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