TMI Blog2019 (1) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... o and with ‘Dish TV India Ltd.’ Due to defaults in repayment of the debentures, the debenture trustee sent a demand notice to ‘Hindustan Oil Ventures Limited’ on 20th December, 2017. All those facts were brought on record but the Appellant has failed to suggest that an application under Section 7 was filed by ‘Invex Private Limited’ fraudulently or with malicious intent, for the purpose of rejecting the application or for imposing penalty under Section 65 of the ‘I&B Code’. Thus in absence of any merit, no relief can be granted. The appeal is dismissed. - Company Appeal (AT) (Insolvency) No. 499 of 2018 - - - Dated:- 30-11-2018 - Mr S.J. Mukhopadhaya, Chairperson And Mr Bansi Lal Bhat, Member (Judicial) For The Appellant : Mr. J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Ltd. , Hindustan Oil Ventures Ltd. and Dish TV India are the Respondents. 4. The Applicant in the intervention application alleged that there was a fraudulent share pledge transaction entered into by the M/s. Invex Pvt. Ltd. - ( Financial Creditor ) in favour of M/s. Dome-Bell Electronics India Private Limited - ( Corporate Debtor ) with the intent to defeat the legitimate claim of the Applicant against the 1st Respondent- M/s. Invex Pvt. Ltd. . There is reference of a third entity i.e. Hindustan Oil Ventures , Chennai, Tamil Nadu. 5. According to the Applicant, it is a Public Limited Company engaged in the business of oil extraction. With the purpose to raise finances the Hindustan Oil proposed to issue on private place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ideocon D2H Ltd. including the M/s. Dome-Bell Electronics India Private Limited - ( Corporate Debtor ) in the said share pledge agreement. Under the said share pledge agreement M/s. Dome-Bell Electronics India Private Limited - ( Corporate Debtor ) had pledged 44,38,400 equity shares of Videocon D2H Ltd. in favour of the debenture trustee. Later on by a letter dated 13th September, 2017, the Hindustan Oil informed the Applicant that there had been changes in the corporate structure of certain companies which had also executed similar agreement and pledged shares in favour of the Applicant. Similarly, the Hindustan Oil also acknowledged, inter alia, that certain shareholders of Videocon D2H entered into a share pledge agreement d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Applicant- Nityank Infrapower Multiventures Pvt. Ltd. was constrained to file a Company Petition. In this Application further information is given that the M/s. Dome-Bell Electronics India Private Limited - ( Corporate Debtor ) was the owner of 4,08,90,000 shares of Videocon D2H . Pursuant to an oral agreement, it was agreed that the M/s. Dome-Bell Electronics India Private Limited - ( Corporate Debtor ) shall issue additional security to the Applicant of those identified shareholding. It was found by the Applicant that M/s. Dome-Bell Electronics India Private Limited - ( Corporate Debtor ) had pledged some of those shares to a third party after the default committed of non-payment. Through a correspondence it was found that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ange for identified shareholding. The apprehension is that on receipt of the shares, M/s. Dome-Bell Electronics India Private Limited - ( Corporate Debtor ) may alienate shares or deal with those shares to defeat the recovery. In the light of the aforementioned background, the application was moved so that the Applicant be made an Intervener, or in the alternate, prayer was made that the Debtor Company be restrained not to pledge 3,40,00,000 shares in Videocon D2H in favour of the ECL Finance Ltd. . 7. The Adjudicating Authority by impugned order dated 21st August, 2018 while admitted the application under Section 7 filed by Invex Pvt. Ltd. - ( Financial Creditor ) and initiated Corporate Insolvency Resolution Process against M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s any order in absence of any corroborating evidence or statement. 11. Section 65 of the I B Code deals with fraudulent or malicious initiation of proceedings whereas Section 66 relates to Fraudulent trading or wrongful trading . As per sub-section (1) of Section 65, if any person initiates the insolvency resolution process or liquidation proceedings fraudulently or with malicious intent for any purpose other than for the resolution of insolvency, or liquidation, as the case may be, the Adjudicating Authority may pass appropriate order of penalty in terms with the said provision. The word collusiveness have not been mentioned there but one can prove collusion to suggest that the proceeding relating to insolvency resolution process ..... X X X X Extracts X X X X X X X X Extracts X X X X
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