Thursday 27 October 2022

M/s. Seth Thakurdas Khinvraj Rathi Vs M/s. Cals Refineries Ltd. - SFIO investigation & Extension of Liquidation Period.

NCLT New Delhi-III(18.10.2022) in M/s. Seth Thakurdas Khinvraj Rathi  Vs M/s. Cals Refineries Ltd.  [Item No. 210 (IB)-447(ND)2017 in  IA-3201/2020] SFIO objected for dissolution of the company.

Excerpts of the Order;

IA-3201/2020: Ld. Counsel, Ms. Shiva Lakshmi has appeared on behalf of the SFIO and submits that they have filed the report dated 03.12.2021. Hard copy of the report is available on record. The SFIO in the para 5 of its report has opposed the application. The para 5 of the report is reproduced below

  • 5. The Serious Fraud Investigation Office humbly submits that the dissolution of the Respondent Company, i.e., M/s. Cals Refineries Ltd. shall be deferred pending prosecution before the Court of Ld. Special Additional Session Judge, Dwarka, New Delhi, otherwise if the respondent company is dissolved pending criminal proceedings against it, it will cause grave injustice and will defeat the larger purpose in public interest of investigation and prosecution launched by SFIO on behalf of the Union of India after extinguishment of identity of the accused respondent company (having the ill-gotten assets), in case it is dissolved pending prosecution against it along with its defaulting Directors.” 


At this stage, Ld. Counsel appearing for the Liquidator sought to file objections/reply to the report of SFIO. The same may be filed within a period of two weeks

In the meantime, the SFIO is again directed to upload the soft copy of their report be uploaded on the DMS.

List for final hearing on 15.12.2022

 

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The sole purpose of this post is to create awareness on the "IBC - Case Law" and to provide synopsis of the concerned case law, must not be used as a guide for taking or recommending any action or decision. A reader must refer to the full citation of the order & do one's own research and seek professional advice if he intends to take any action or decision in the matters covered in this post.