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2022 (4) TMI 75 - Tri - Insolvency and BankruptcyViolation of principles of natural justice - ex-parte order passed - it is contended by the Applicant that no notice was received by him regarding the intimation to be present for hearing - opportunity of hearing not provided - HELD THAT:- It is clear from the provision of Section 19(2) of IBC that the Ex-Management shall be bound to co-operate with the Resolution Professional, enabling the Resolution Professional to carry out and complete the resolution process, which is time bound and in the event of non-1 cooperation by the Corporate Debtor, its promoters or any other person associated with the management of Corporate Debtor, the Resolution Professional is entitled to move the Tribunal and upon filing an Application by the Resolution Professional, the Tribunal is entitled to direct such personnel or other person to comply with the instructions of the Resolution Professional and to cooperate with him in collection of information and management of the Corporate Debtor. In the case on hand, the minutes of CoC meeting dated 09.03.2021 categorically discloses that the Resolution Professional had brought to the notice of the members of CoC that information such as audited financial statements of Corporate Debtor for the years 2019, 2020 and provisional balance sheet as on the Insolvency Commencement date i.e. 18.01.2021 for preparation of Information Memorandum were not furnished and the Director of the Suspended Management Shri L.N. Sharma assured that he will arrange within 3 days. However, as there was no compliance, the CoC in its next meeting dated 14.06.2021, once again took up the same issue. Pursuant thereto, Shri L.N. Sharma, the Director of Ex-Management requested for two weeks' time to furnish all the details. But, once again he defaulted in complying his own undertaking, hence the issue of non-furnishing of the records once again came up before the CoC in its meeting dated 23.07.2021. The Director of the Corporate Debtor, though assured to deliver the relevant records to the IRP, never kept his undertaking. Thus, breach of sub-section (1) of Section 19 is as clear as crystal, as such it is certainly open to the IRP to make an application to the Adjudicating Authority for necessary directions. In the instant case, this Adjudicating Authority, having found proof of non-cooperation by the Ex-Management, without going into the allegations, placing reliance on sub-section (1) of Section (19), passed a direction to hand over all the records and papers to the IRP, enabling successful completion of CIRP within the timeline. In passing such an order, there is no violation of principles of natural justice - there is clear violation of mandatory duty cast upon the ex-management in terms of Section 19(1) of IBC. The Application stands dismissed.
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