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Corporate Insolvency Resolution Professional in the Matter of M/s Neesa Infrastructure Limited

Corporate Insolvency Resolution Professional in the Matter of M/s Neesa Infrastructure Limited

An authorized signatory, Mr. Sanjay Gupta on behalf of M/s. Neesa Infrastructure Limited filed the petition under Section 10 of The Insolvency and Bankruptcy Code, 2016 read with Rule 7 of The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, as operational creditor/applicant.

The National Company Law Tribunal (NCLT) dismissed the application for the Corporate Insolvency Resolution Process under Section 10 of Insolvency Bankruptcy Code filed by M/s Neesa Infrastructure Limited on the grounds that no returns have been filed by the company.
On issuance of a notice, the financial creditors namely State Bank of India, Central Bank of India, Indian Overseas Bank, and Small Industries Development Bank of India (SIDBI) appeared through counsel and filed objections towards.

The tribunal after considering the record noted that as per the record of the financial creditor – Central Bank of India, there are five directors. However, subsequently, when it is verified with the MCA portal it is found that the pattern and status of the Directors have been changed and the same has never been informed to the financial creditors. 

The tribunal, on perusal of the record, found that no Board Resolution is ever passed by the company authorizing Mr. Sanjay Gupta to file the instant application. Further, on perusal of the record, it appears that Mr. Sanjay Gupta obtained Special Power of Attorney in his favor issued by Ms. Neelu Gupta flouting all the norms of the Companies Act, who is not even the director, thereby the very power given in favor of Mr. Sanjay Gupta is bad in the eye of law and as such the application is not maintainable for want of proper authorization.

NCLT Ahmedabad bench held that disqualified directors under Section 164 of Companies Act 2013 cannot file an application under 10 as a corporate applicant. 

 

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