NCLT directs Promoter to Refund 7.78 cr for Outstanding Dues from HUF Firm revealed in Forensic Audit
Refund 7.78 Crores for Outstanding Dues – 7.78 Crores for Outstanding Dues from HUF Firm – Outstanding Dues from HUF Firm revealed in Forensic Audit – HUF Firm revealed in Forensic Audit – TAXSCAN
Refund 7.78 Crores for Outstanding Dues – 7.78 Crores for Outstanding Dues from HUF Firm – Outstanding Dues from HUF Firm revealed in Forensic Audit – HUF Firm revealed in Forensic Audit – TAXSCAN
The National Company Law Tribunal (NCLT) Ahmedabad has directed the promoter of Corporate Debtor to refund Rs. 7.78 Crores in lieu of pending dues from HUF firm on the basis of forensic audit.
An application was filed by the Resolution Professional (RP) of Sysco Industries Ltd. (Corporate
Debtor) seeking inter alia, a direction to the respondent 3, promoter of the firm to refund the pending dues in lieu of supplied goods.
The applicant stated that, based on the records available to them and in accordance with the transaction audit report, certain acts had been committed by the suspended management with the intention to defraud the creditors of the Corporate Debtor. The specific points highlighted are as follows:
The applicant mentioned that in the books of the Corporate Debtor for the year ending 31.03.2019, there was an outstanding amount of Rs.7,78,31,555/- from M/s Pratap Associates, who is the HUF Firm of Respondent No.3 herein. The applicant further stated that no amount had been received from M/s Pratap Associates after 31.03.2019, and there had been no reply from the respondents regarding the outstanding amount. The applicant provided annexed communications made to the suspended management and the auditor at ANNEXURE-F-.
Thus, it was asserted that the said transaction is a questionable transaction, thus falling within the ambit of Section 43 of the Code.
The respondent has admitted that goods were supplied by the CD and the outstanding of Rs. 7.78 crores are not denied. The Respondents have not denied that M/s Pratap Associates is his HUF which is a related party.
The Tribunal bench observed that, “It is common practice that before commencement of insolvency, the assets of the corporate debtor are stripped many a times by the management. The suspended management conceals the data from the RP during the CIRP process. In the present matter too S. 19 (2) application was filed by the RP.”
It was thus stated that, “The present case falls squarely within the ambit of S. 43 of the Code so far as transactions with Pratap Associates is concerned. As such we have no hesitation to hold that transactions are hit by provisions of S. 43 of the Code.”
It was thus held that, “In terms of the above observations prayers (a) and (b) are hereby allowed. R-1 to R-3 are directed to deposit the said amount of Rs. 7.78 Crores within a period of 15 days from the date of the order with the Corporate Debtor who in turn should distribute the same to the erstwhile members of COC immediately in their respective share.”
To Read the full text of the Order CLICK HERE
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