# In the matter of Y M Foodways Private Limited I.A. No. 5610 of 2020 in Company Petition (IB)No. 421-ND-2019

> NCLT judgment dated 2022-02-21. Citation: TCN-2022-NCLT-04020. The case involves an application filed by Satya Prakash, the Resolution Professional (RP),…

- **Court:** NCLT
- **Order date:** 21 Feb 2022
- **Citation:** TCN-2022-NCLT-04020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/y-m-foodways-private-limited-ia-no-5610-of-2020-in-company-petition-ibno-421-nd-77f81d95

## Summary

### Background

The case involves an application filed by Satya Prakash, the Resolution Professional (RP), under Section 25(2)(j) read with Section 66 of the Insolvency and Bankruptcy Code (IBC), 2016. The application seeks a declaration that transactions entered into by the Corporate Debtor (Y M Foodways Private Limited) and Respondents No. 1 & 2 (Uttam Toy and Mukesh Roy, Directors) were wrongful trading and fraudulent transactions. The RP also seeks directions for the respondents to make good the losses caused to the Corporate Debtor. The matter is related to Company Petition (IB) No.421/ND/2019, where CIRP was initiated against Y M Foodways Private Limited based on an application filed by Sumukhi Sales Private Limited (Operational Creditor) under Section 9 of the IBC. The

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## Facts

The Corporate Debtor, Y M Foodways Private Limited, underwent Corporate Insolvency Resolution Process (CIRP) initiated by Sumukhi Sales Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. Mr. Amit Kaushal was initially appointed as the Interim Resolution Professional (IRP), later replaced by Satya Prakash. A transaction audit conducted by M/S Kashyap Sikdar & CO revealed discrepancies in the Corporate Debtor's financial transactions, specifically concerning the realization of sales and payments for purchases. The audit indicated that a significant portion of these transactions was not processed through the company's bank accounts but rather through 'Unclear Cheque/Payment Clearing Accounts,' suggesting a netting-off of receipts and

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## Issues and analysis

### Issue 1: Whether the application under Section 66 of the IBC is maintainable given the alleged …

**Ratio:** The court relies on previous decisions of the Hon'ble Supreme Court, stating that the

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**Reasoning:** The court observes that the IBBI has the power to make regulations under Section 240 of

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**Interpretation:** The interpretation is that while the IBBI has set timelines for the resolution

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**Application:** The court applies this principle to the present case, finding that the delay in

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## Parties

- **Judges:** Sh. Abni Ranjan…; Sh. Avinash K.…
- **Appellants:** Satya Pr…
- **Respondents:** Y M Foodways…; Uttam…

## Timeline

- **2019-11-21 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Y M Foodways Private…
- **2019-12-20 — 1st CoC M…**: First meeting of the Committee…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 25(2) — Duties of resolution professional](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-25)

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