# Mr. George Varkey (RP of Periyar Agro Food Industries P. Ltd) vs. Mohammed Riyaz & Abdul Marakkar

> NCLT judgment dated 2026-05-08. Citation: TCN-2026-NCLT-00527. M/s. Periyar Agro Food Industries Private Limited, the Corporate Debtor, was undergoing…

- **Court:** NCLT
- **Order date:** 8 May 2026
- **Citation:** TCN-2026-NCLT-00527
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kochi/mr-george-varkey-rp-of-periyar-agro-food-industries-p-ltd-vs-mohammed-riyaz-abdu-wtops

## Summary

### Background

M/s. Periyar Agro Food Industries Private Limited, the Corporate Debtor, was undergoing Corporate Insolvency Resolution Process (CIRP). During the CIRP, the Resolution Professional (RP), Mr. George Varkey, observed financial irregularities. A forensic audit revealed that the suspended Managing Director and Director, Mohammed Riyaz and Abdul Marakkar, had allegedly carried out the business with intent to defraud creditors by overstating stock values and creating fictitious trade receivables. Consequently, the RP filed an application under Section 66 of the Insolvency and Bankruptcy Code, 2016, seeking directions for the Respondents to contribute to the Corporate Debtor's assets. The Respondents, in turn, filed an application seeking cross-examination of the RP and

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## Facts

M/s. Periyar Agro Food Industries Private Limited, the Corporate Debtor, was incorporated on 23.12.1996 and engaged in manufacturing wheat-based products.

An application under Section 9 of the IBC was filed against the Corporate Debtor by M/s. ITC Limited for a default of Rs. 1,39,11,188/-.

The application was admitted on 21.12.2021, and Mr. George Varkey was appointed as the Interim Resolution Professional.

During the Corporate Insolvency Resolution Process (CIRP), irregularities were observed in the financial affairs of the Corporate Debtor.

The Committee of Creditors (CoC), in its 8th meeting on 27.04.2022, resolved to conduct a forensic audit and appointed Mr. Vibin Vincent as the Forensic Auditor.

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## Issues and analysis

### Issue 1: Whether the Respondents have carried on the business of the Corporate Debtor with an intent to …

**Ratio:** The Adjudicating Authority found that the Respondents failed to provide a cogent

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**Reasoning:** The Respondents' argument regarding Section 10A was belated and not a pure question of

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**Interpretation:** Section 66(1) of the IBC holds persons liable for fraudulent trading if the

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**Application:** The Respondents, as suspended directors, were found to have carried on the

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## Parties

- **Judges:** Shri. Vina…
- **Appellants:** George V…
- **Respondents:** Periyar Agro Food…; Mohammed…; +1 more
- **Other parties:** Committee of…; Union…; +1 more
- **Advocates:** Mr Akhil…; Mr Sherry Samuel…; +1 more

## Timeline

- **1996-12-23 — Incorporation of…**: M/s. Periyar Agro Food Industries Private…
- **2021-12-21 — Admission of CIRP Application and IRP…**: An application under Section 9 of the IBC was admitted against the Corporate Debtor, and…

## 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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