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Ex. Directors of Shivam Water Treaters given 2 days to hand over entire property to RP: NCLT [Read Order]

NCLT - Shvam Water Treaters - tTaxscan

The Mumbai Bench of the National Company Law Tribunal ( NCLT ) in the case of Asset Reconstruction Co. (India) Pvt. Ltd. v Shivam Water Treaters Pvt. Ltd. vide its order dated 18.02.2019, has provided two days to the Ex-Directors to comply with the directions of the NCLT and hand over the entire property, papers and all documents relating to the Corporate Debtor company to the RP.

After the Resolution Professional (RP) was provided with police assistance to carry on the Corporate Insolvency Resolution Process (CIRP), the RP expressed her failure to identify the exact location of the factory premises. Further, that the Corporate Office of SWTPL were sealed by the Ahmedabad Municipal Corporation (AMC) the same day on failure to pay municipal taxes after the imposition of moratorium under Section 14 of the I and B Code.

The Tribunal constituting of Hon’ble members Shri. Ravi Kumar Duraisamy and Shri. V.P. Singh directed the Municipal Corporation of Ahmedabad to immediately open the seal and hand over the possession of the entire property of the Corporate Debtor to the RP.

“As far as the conduct of Mr Gaurav Dave, Ex-Director of the Corporate Debtor and his son/Business Head Mr Vishal Dave are concerned, they are directed to file affidavit relating to non co-operation with the RP. It is to be clarified that RP is discharging her duties as Court Officer and any noncompliance of the Court Officer will be deemed as Contempt of Court.”

Furthermore, the Tribunal provided Ex-directors 2 days to comply with the directions of the Hon’ble Tribunal and hand over the entire property, papers and all documents relating to the Corporate Debtor company to the RP. The status report of the RP is to be submitted again on 25.02.2019 along with presence of the Ex-directors in person.

Hence, the Tribunal relying upon the earlier order of NCLAT directed the RP “that the company should remain as a going concern so that the manufacturing and production of the company do not suffer, payment of wages to the employees/ workmen are made on time and if any material is supplied during the corporate resolution process.” The RP after taking full control of the Corporate Debtor is to comply with the directions of the Hon’ble NCLAT.

To Read the full text of the Order CLICK HERE
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