NCLT recollects insolvency order in opposition to Logix Infra, cites ‘fraudulent and mala fide’ intentions, ETCFO
In a uncommon transfer, NCLT has recalled and put aside its personal order directing insolvency proceedings in opposition to realty agency Logix Infrastructure in July 2023, saying the plea was initiated with “fraudulent and mala fide intentions” and a collusive petition was filed by the monetary creditor. NCLT mentioned “there’s a nexus and connection” between its monetary creditor Specialists Realty Professionals whose plea for insolvency was initiated in opposition to Logix Infrastructure. The company tribunal mentioned all the transaction was “orchestrated” and discussion board was used “with purported malicious intent”.
The insolvency petition filed “with an ulterior motive” in opposition to Logix Infrastructure and its monetary creditor has used this discussion board for functions aside from the insolvency decision of the realty agency with purported malicious intent, opposite to the goals of the IBC, the tribunal mentioned.
The Nationwide Firm Regulation Tribunal (NCLT) additionally requested for a radical probe by the Critical Fraud Investigation Workplace (SFIO) and lifting of the veil to comprehensively look at the alleged fraudulent and collusive actions.
“We’re of the thought of view that the Part 7 utility bearing IB-237(ND)/2023 filed by the monetary creditor (Specialists Realty Professionals) is a collusive utility filed in collusion with the company debtor (Logix Infra) with an ulterior motive,” mentioned NCLT.
On July 14, 2023, the NCLT had directed initiating a Company Insolvency Decision Course of (CIRP) in opposition to Logix Infrastructure whereas admitting a plea filed by Specialists Realty Professionals claiming a default on compensation of debt.
The NCLT on final Thursday recalled and put aside its July 2023 order and handed a brand new ruling “directing the Decision Skilled at hand over the administration of the company debtor’s affairs to the ex-management/suspended board of administrators of the company debtor”.
The NCLT additional mentioned if any decision plan has been submitted by any profitable bidder, in that case Decision Skilled is directed to refund the earnest cash deposit adopted by the efficiency financial institution assure submitted by them inside one week.
It has additionally directed the monetary creditor to pay all prices, charges, and bills of the Decision Skilled inside every week.
Apart from, the insolvency tribunal additionally imposed a penalty of Rs 5 lakh on the monetary creditor and requested it to deposit the quantity within the Prime Minister’s Nationwide Aid Fund (PMNRF) inside ten days from the date of passing of this order.
NCLT’s newest order got here after an utility moved by allottees within the Logix Blossom Nation, a challenge of the realty agency, requesting the tribunal to revoke the insolvency course of because it has been filed with fraudulent and malicious intentions to defraud collectors and the flat allottees.
They identified two key folks as associated events. Hemant Sharma, an Extra Director in Specialists Realty Professionals, was the monetary creditor from Might 12, 2020 to September 5, 2020 and was appointed as a director in Logix Infra on September 11, 2020.
In addition they challenged the Memorandum of Understanding (MoU) dated October 20, 2020, involving the consideration of Rs 15 crore and the minutes of assembly dated December 15, 2021, underneath which the realty agency bought the allotted models to a monetary creditor, contending that these paperwork spotlight a number of deficiencies.
The tribunal additionally noticed that the MoU and minutes weren’t accompanied by any stamp paper. In accordance with the Stamp Act, such agreements require a stamp paper of at the very least Rs 100.
Agreeing to allottees’ submissions, NCLT mentioned: “We’re of the thought of view that this raises doubts in regards to the authenticity and genuineness of the MoU dated October 20, 2020 and the minutes dated December 15, 2021. Due to this fact, these paperwork can’t be relied upon by the monetary creditor, in the principle Part 7 Utility.”
NCLT additional mentioned candidates have “offered legitimate proof to show fraud or malicious intent” of Specialists Realty Professionals in opposition to Logix Infrastructure and the reason given by the monetary creditor “isn’t convincing”.
“After reviewing the grasp knowledge and the paperwork offered by the candidates relating to the monetary creditor …we settle for the rivalry …that there’s a nexus and connection between the monetary creditor and the company debtor,” the NCLT mentioned.
NCLT has discovered the associated social gathering transaction manipulated the actions of each the company debtor and the monetary creditor, mentioned a two-member NCLT bench comprising members Atul Chaturvedi and B V Balram Das.
“Each firms have been initially managed by unbiased individuals; nevertheless, simultaneous modifications in Key Managerial Personnel (KMPs) in each firms, together with resignations within the monetary creditor and appointments within the company debtor, can’t be ignored and spotlight their conduct,” mentioned the 18-page NCLT order.
