R.Arumugasamy vs United Bank Of India & Anr

Present: For Appellant : Mr. M.A. Chinnasamy, Mr. V. Senthil Kumar and Mr. C. Rupavathy, Advocates For Respondents : Mr. P.V. Dinesh, Mr. Ashwini Kumar Singh and Mr. R.S. Lakshman, Advocates for 'Resolution Professional' Mr. Santosh Kumar and Mr. Amit Kumar Dhal, Advocates ORDER

01.08.2019 This appeal has been preferred by 'R. Arumugasamy',

Managing Director of 'M/s. R.A. Samy Trading Private Limited' (Corporate

Debtor) against order dated 30th April, 2019 passed by the Adjudicating

Authority (National Company Law Tribunal) Division Bench, Chennai whereby

application u/s 7 of the 'Insolvency and Bankruptcy Code, 2016 (for short, 'the

I&B Code') filed by United Bank of India (Financial Creditor) has been admitted.

The sole ground taken by the Appellant is that the Adjudicating Authority has

passed the order without taking counter-statement of the Appellant. However,

from the impugned order dated 30th April, 2019 we find that the 'Corporate

Debtor' was noticed and heard and one Mr. Naveen Kumar Murthi and Mr. G.V.

Mohan Kumar, Advocates appeared on behalf of the 'Corporate Debtor'. The

other ground taken by the Appellant is that the Adjudicating Authority has failed

to consider that the 'Corporate Debtor' had made the payment. However, it is

not disputed that there is a 'part default' which is much more than Rupees One

Lakh ( i.e. Rs. 9.5 Crores) and the 'Corporate Debtor' has failed to pay. Apart

from the fact that there is no merit in this appeal, it is informed by the learned counsel appearing on behalf of the 'Resolution Professional' that the Appellant

and the other Directors have not handed over the rest of the referred documents

and possession of the assets to the 'Resolution Professional'. On 10th May, 2019

this Appellate Tribunal observed that the Appellant would hand over all the

documents which were in their possession. Today, it is informed by the learned

counsel for the Appellant that the same has been handed over yesterday but it

is denied by the learned counsel for the 'Resolution Professional'.

Having heard the learned counsel for the Appellant and the learned

counsel appearing on behalf of the United Bank of India on merit, we do not find

any reason to interfere with the impugned order. This apart the Appellant and

the Directors and Officers had not handed over the assets and documents of the

'Corporate Debtor' to the 'Resolution Professional'. It will be open to the

'Resolution Professional' to move appropriate application before the Adjudicating

Authority including the application for initiation of action under Chapter VII of

Part II of the 'I&B Code'.

The appeal is dismissed with aforesaid liberty to the 'Resolution

Professional' with costs of Rupees One Lakh, which is to be paid by the Appellant

to the 'Corporate Debtor' through 'Resolution Professional'.

[Justice S.J. Mukhopadhaya] Chairperson

[ Justice A.I.S. Cheema ] Member (Judicial)

[ Kanthi Narahari ] Member (Technical) /ns/gc