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CaseIQ

K SATHEESH BABU RAJESH v. George Varkey

National Company Law Tribunal

May 31, 2021

Judgment

Subsequent
References

CaseIQ

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Structured Summary of the Judicial Proceeding — 31 May 2021 (Bench: Shri Ashok Kumar Borah, Member (Judicial))

Factual and Procedural Background

This document records the bench proceedings dated 31 May 2021 in a series of applications and company petition matters before the Tribunal (bench: Shri Ashok Kumar Borah). Several interlocutory applications (IAs), company petitions (CPs), and related matters were taken up via video conferencing (VC). The proceedings record appearances, submissions, directions to issue notices, orders to implead banks, directions to file counters/rejoinders, defects in pleadings, and multiple adjournments largely attributable to difficulties in accessing files during COVID‑19 restrictions.

Key procedural events recorded in the order (selected from the text) include:

IA(IBC)/84/KOB/2021 in IBA/52/KOB/2019: Noted appearances; the Registrar of Corporate Insolvency (RP) submitted that the CIRP period expired on 23.05.2021. The IA was disposed of "vide separate sheets".
IA(IBC)/80/KOB/2021 in MA/05/KOB/2020 in TIBA/1/KOB/2019: An application by the Liquidator seeking impleadment of banks and their cooperation in relation to amounts credited to the Corporate Debtor's bank accounts was allowed; two banks (ICICI Bank, Sasthamangalam Branch and SBI, Panavila Branch) were impleaded; directions were given to issue fresh notices and for the banks to file counters within two weeks; the matter was listed on 21.06.2021.
IA(IBC)/75/KOB/2021 in TIBA/19/KOB/2019: The RP was directed to clarify (i) CIRP period availed as on 11.03.2021 and (ii) whether the Committee of Creditors (CoC) authorised the RP to file any application under Section 60(5) of the IBC; the RP stated CoC had not authorised him to file under Section 60(5) and was directed to file a memo; the IA was reserved for orders and listed for pronouncement on 04.06.2021.
Various other IAs and CPs were either adjourned (with dates specified) or listed for further hearing; recurring procedural directions include filing of physical copies where e‑filing was claimed, curing defects in annexures (Rule 23(2) of NCLT Rules, 2016 was invoked as to certification of annexures), and instructing the Registry to communicate orders by email.
Multiple matters were adjourned due to parties or their counsel being unable to access files because of COVID‑19 restrictions; several matters were recorded as "Part Heard" with directions for respondents to file argument notes within two weeks where not yet filed.

Legal Issues Presented

Whether the Liquidator's prayer to implead specified banks (ICICI Bank, Sasthamangalam Branch and SBI, Panavila Branch) for cooperation regarding amounts credited to the Corporate Debtor's bank accounts should be granted (IA(IBC)/80/KOB/2021).
For IA(IBC)/75/KOB/2021: (a) What period had been availed for the Corporate Insolvency Resolution Process (CIRP) as on 11.03.2021; and (b) whether the Resolution Professional (RP) had been authorised by the Committee of Creditors (CoC) to file any application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016.
Procedural compliance issues: whether counters/rejoinders and annexures comply with procedural requirements (specifically certification of annexures as true copies under Rule 23(2) of the NCLT Rules, 2016), and the appropriate cure/directions where such defects exist.

Arguments of the Parties

Applicant / Resolution Professional (RP)

In IA(IBC)/84/KOB/2021 (in IBA/52/KOB/2019), learned counsel for the RP (Shri Vinod PV) submitted that the CIRP period had expired on 23.05.2021.
In IA(IBC)/75/KOB/2021, RP Shri Jasin Jose stated (i) he had filed a memo on 06.05.2021 online but registry reported none received, and (ii) that the CoC had not authorised him to file any application under Section 60(5) of the IBC; he undertook to file a memo clarifying the points within a day or two (and the submission was recorded).
In IA(IBC)/78/KOB/2021, the RP (Shri Vinod PV) was present and directed to file a rejoinder, if any, before the next date.

Liquidator

In IA(IBC)/80/KOB/2021, Learned Liquidator Shri Shawn Jeff Christopher appeared and sought impleading the banks of the Corporate Debtor and their cooperation with respect to amounts credited to the Corporate Debtor's bank account.
The Liquidator was directed to issue fresh notice with the booklet to R1 Bank through email and Registered Post with A/D or Speed Post and to submit proof of service (A/D card or Postal Track Report) with an affidavit before the next date fixed.

Banks / Respondents / Other Parties

Advocate Shri Vinod PV appeared for State Bank of India (in IA(IBC)/80/KOB/2021) and stated that he would file the vakalatnama and counter for SBI shortly and was given two weeks to do so.
Respondent Smt. Manjula Devi (in IA(IBC)/78/KOB/2021) submitted that she had filed the counter two weeks earlier through e‑filing; she was directed to file the physical copy of the counter within a week.
In multiple matters petitioners' or respondents' counsels sought adjournments by email citing inability to access files due to COVID‑19; several such requests were granted with specific future dates.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Tribunal's reasoning and directions are predominantly procedural and fact‑specific as recorded in the bench proceedings. The court applied procedural rules and case management principles to manage multiple pending matters under the constraints of COVID‑19. The step‑by‑step analysis in the text includes:

IA(IBC)/84/KOB/2021 (in IBA/52/KOB/2019): After hearing learned counsel for the applicant and the RP, and noting the RP's submission that the CIRP period had expired on 23.05.2021, the Tribunal disposed of the IA by separate sheets (no further reasoning is recorded in the provided text for the disposal).
IA(IBC)/80/KOB/2021 (impleading banks): After hearing the liquidator and counsel for SBI and perusing record, the Tribunal allowed the prayer to implead the specific banks (R1 and R2). The Tribunal justified directions to effect service and obtain proof of service so that the newly impleaded respondents can be given an opportunity to file counters; consequently, it directed the Registry to implead the banks in the cause title and directed the liquidator to issue fresh notices via email and registered post with acknowledgement or speed post and to submit proof of service by affidavit before the next date. The Tribunal also directed the banks to file their counters within two weeks and listed the matter for a specified date.
IA(IBC)/75/KOB/2021: The Tribunal required clarifications on the CIRP period availed and on the RP's authorization by the CoC to file applications under Section 60(5) of the IBC. On the RP's statement that CoC had not authorised him to file under Section 60(5) and his undertaking to file a memo, the Tribunal recorded the submission and reserved the IA for orders, listing a date for pronouncement conditioned on receipt of the memo.
On procedural compliance and defects: In CP/30/KOB/2020, the Tribunal observed that the respondent's counter was defective because annexures were not certified as true copies as required under Rule 23(2) of the NCLT Rules, 2016. The Tribunal directed the respondent to cure the defect within one week, warning that failure to do so would result in consequences ("law shall take its own course").
On adjournments and COVID‑19 disruptions: Repeatedly, applications for adjournment were allowed where counsel cited inability to access files due to COVID‑19; the Tribunal routinely reset dates and, where applicable, directed parties to file physical copies or cure defects within specified short timelines. The Tribunal also repeatedly recorded that respondents had not filed argument notes in certain matters and permitted two weeks for filing such notes where necessary.
On liquidator reports and non‑appearance: Where the Liquidator did not file a report as directed in CP/115/KOB/2019, the Tribunal granted another opportunity and directed the Registry to communicate the order to the Liquidator immediately by email.

Holding and Implications

The Tribunal issued a series of procedural holdings and consequential directions. The principal outcomes recorded in the provided text are:

IA(IBC)/84/KOB/2021 in IBA/52/KOB/2019 — DISPOSED OF (disposed vide separate sheets as recorded).
IA(IBC)/80/KOB/2021 in MA/05/KOB/2020 in TIBA/1/KOB/2019 — ALLOWED the prayer to implead the specified banks (R1: ICICI Bank, Sasthamangalam Branch, Trivandrum; R2: SBI Bank, Panavila Branch, Trivandrum). Consequential directions: Registry to implead the banks in the cause title; liquidator to issue fresh notices by email and registered post with A/D or speed post and to file proof of service by affidavit; both banks to file counters within two weeks; matter listed on 21.06.2021.
IA(IBC)/75/KOB/2021 in TIBA/19/KOB/2019 — RESERVED for orders subject to the RP filing the promised memo clarifying the CIRP period availed and the CoC authorisation; matter listed for pronouncement on 04.06.2021.
IA(IBC)/78/KOB/2021 in TIBA/25/KOB/2019 — Procedural directions: respondent who filed counter via e‑filing to file physical copy within one week; the RP to file a rejoinder, if any; listed on 21.06.2021.
CP/30/KOB/2020 — The Tribunal held that annexures to the respondent's counter were not certified as true copies as required under Rule 23(2) NCLT Rules, 2016, and directed the respondent to cure the defect within one week, failing which the Tribunal warned further consequences.
CP/115/KOB/2019 — The Liquidator, who had not filed the Tribunal‑directed report, was granted another two‑week opportunity to file the report; Registry directed to communicate the order immediately by mail; matter listed for report on 23.06.2021.
Multiple matters — Several applications and petitions were adjourned with specified future hearing dates due to COVID‑19 related access issues; where respondents had not filed argument notes the Tribunal allowed two weeks for filing and directed that copies of orders be issued by email to parties.

Implications: The orders are case‑management and procedural in nature. The direct effects recorded are limited to the parties before the Tribunal: implementation of impleadment and notice directions in IA(IBC)/80/KOB/2021, requirement to cure procedural defects (e.g., certification of annexures), and deadlines for filing of memos, counters, rejoinders, and reports. The opinion does not set out any statement of law as a binding precedent beyond the application of existing procedural rules; no new legal precedent is announced in the provided text.

Show all summary ...

Daily - Draft In the Bench of: Shri Ashok Kumar Borah, Member (Judicial) Date: 31^stMay 2021

1 IA(IBC)/84 /KOB/2021 IN IBA/52/KOB/2019

Learned counsel for the applicant Smt. Jagrithi Sanghi as well as learned counsel for the RP Shri Vinod PV appeared through VC. Shri Vinod submitted that the CIRP period has already been expired on 23.05.2021. Heard both sides. IA(IBC)/84 /KOB/2021 IN IBA/52/KOB/2019 is disposed of vide separate sheets.

2 IA(IBC)/80/KOB/2021 IN MA/05/KOB/2020 IN TIBA/1/KOB/2019

Learned liquidator Shri Shawn Jeff Christopher appeared through VC. This is an IA filed by the Liquidator for impleading the Banks of the Corporate Debtor and seeking co-operation from the Banks over the amounts credited in the Banks account of the CD. Advocate Shri Vinod PV appeared through VC for State Bank of India. He submitted that he would file the Vakkalath and counter for SBI shortly. He may do so within two weeks.

Heard the liquidator as well as the learned counsel for State Bank of India. I have also perused the whole case records. The prayer for impleading the following Banks in this case is allowed.

R1 : The Manager,

ICICI Bank,

Sasthamangalam Branch, Trivandrum, Kerala 695010

R2 : The Manager

SBI Bank,

Panavila Branch, Ground Floor,'

Kousthuram, Commercial Complex, Panavila,

Trivandrum 695014.

Registry is directed to make impleadment in the cause title. The liquidator is directed to issue fresh notice with the booklet to the R1 Bank through email and Registered Post with A/D or Speed Post and submit proof of service (A/d card or Postal Track Report) with an affidavit before the next date fixed.

Registry is also directed to issue notice to R1 through email. Both the banks are directed to file their counter within two weeks. List IA(IBC)/80/KOB/2021 IN MA/05/KOB/2020 IN TIBA/1/KOB/2019 on 21.06.2021.

3 IA(IBC)/75/KOB/2021 IN TIBA/19/KOB/2019

Learned Applicant/RP Shri Jasin Jose appeared through VC. Vide order dated 29.04.2021 the RP was directed to clarify on the following points:

(1) The period availed for the CIR Process as on 11.03.2021;

(2) Whether the RP has been authorised by CoC to file any application under 60(5) of IBC 2016.

The RP submitted that he has filed a memo on 06.05.2021 through online. But registry reported that no such memo has been received. RP submitted during the hearing that CoC has not authorised him to file any application under Section 60(5) of IBC 2016. The RP also submitted that he shall file a memo and clarify the above points within a day or two. The submission of the RP is recorded. Subject to receipt of the Memo within two days from the RP, IA(IBC)/75/KOB/2021 IN TIBA/19/KOB/2019 is

Reserved for Orders. List for pronouncement of orders on 04.06.2021.

4 IA(IBC)/78/KOB/2021 IN TIBA/25/KOB/2019

Learned counsel for the RP Shri Vinod PV as well as learned counsel for the respondents Smt. Manjula Devi appeared through VC. Smt. Manjula submitted that she had filed the counter two weeks back through efiling. She is directed to file the physical copy of the counter within a week. The RP is directed to file the rejoinder, if any, before the next date fixed. List on 21.06.2021.

5 IA/33/KOB/2021 IN TIBA/25/KOB/2019

Learned counsel for the petitioner Shri Gokul sought an adjournment through Email stating that he is not able to access the case files owing to the Covid-19 restrictions. Adjourned to 21.06.2021.

6 IA/15/KOB/2020 IN TCP/01(KOB)/2020 (CP/20/1985/HC)

No response from both sides. Adjourned to 22.06.2021.

7 TCP/46/KOB/2019

Learned counsel for the Petitioner Shri Pradeep Joy sought an adjournment through email stating that it is difficult to access the case files owing to the Covid-19 restrictions. Adjourned to 22.06.2021.

8 TCP/01(KOB)/2020 (CP/20/1985/HC)

Learned counsel for R3 Smt. Sindhu Lekshmi expressed willingness to appear through VC. But no response from the Petitioners. Hence adjourned to 22.06.2021.

9 CP/115/KOB/2019

None appeared for the petitioner or respondents. This matter is listed today for the report of the Liquidator appointed by this Tribunal. However, no response from the Liquidator also, even though the Registry communicated the order to him. The liquidator is granted another opportunity to file the report within two weeks. Registry to communicate this order to the Liquidator immediately through mail. List on 23.06.2021 for report of Liquidator.

10 CA/33/KOB/2021 IN CP/08/KOB/2020

Both sides sought an adjournment through email. Adjourned to 07.07.2021.

11 IA/152/KOB/2020 IN CP/08/KOB/2020

Both sides sought an adjournment through email. Adjourned to 07.07.2021.

12 CP/08/KOB/2020

Both sides sought an adjournment through email. Adjourned to 07.07.2021.

13 CP/30/KOB/2020

Learned counsel for the Petitioner Shri Anil D. Nair appeared through VC. He submitted that pleadings are complete and hence ready to argue the matter. Learned counsel for respondents sought an adjournment as she could not access the files in the office due to covid 19. But it appears from records that the counter filed by the Respondent is defective since the annexures attached along with the counter are not certified as true copies as required under Rule 23(2) of NCLT Rules, 2016. The Respondent is directed to cure the defect within one week positively, failing which law shall take its own course. List on 18.06.2021 for hearing.

14 CP/53/KOB/2020

Learned counsel for the Petitioner expressed willingness to appear through VC. No response from R1 to R3.

Adjourned to 24.06.2021.

15 CP/11/KOB/2021

Learned counsel for the petitioner Shri Praful Surendran sought an adjournment through Email stating that he needs time to file the rejoinder. He may file the rejoinder within two weeks.

Adjourned to 24.06.2021.

16 CP/19/KOB/2021

Learned counsel for the Petitioner Shri Philip Mathew has filed a memo stating that a No Objection Letter was issued to the petitioner on 18.05.2021 to enable the petitioner to appoint another counsel relinquishing the vakkalath executed by him. Adjourned to 02.07.2021.

Registry is directed to issue copy of this order to the Petitioner through email.

17 CA(CAA)/01/KOB/2021

Learned PCS for the applicant Shri P.P.Zibi Jose appeared through VC. He submitted that he has filed the required documents as directed by this Tribunal vide order dated 08.04.2021. But the Bench observed that the prayer of the CA has not been amended in accordance with the documents filed. Shri Sibi Jose submitted that he would file an IA to amend the prayer of the CA shortly. He may do so positively before the next date fixed.

List on 18.06.2021.

18 IA/217/KOB/2020 IN TCP/26/KOB/2019 (CP/716/19)

Learned counsel for the Petitioner Shri Aswin Gopakumar sought an adjournment through email stating that he is unable to access the office due to Covid 19 lock down.

Learned counsel for Respondents Smt. S. Manjula Devi expressed willingness to appear through VC. Adjourned to 25.06.2021.

19 TCP/26/KOB/2019 (CP/716/19)

Learned counsel for the Petitioner Shri Aswin Gopakumar sought an adjournment through email stating that he is unable to access the office due to Covid 19 lock down.

Learned counsel for Respondents Smt. S. Manjula Devi expressed willingness to appear through VC.

Adjourned to 25.06.2021.

20 MA/207/KOB/2020 IN IA/129/KOB/2020 IN TIBA/07/KOB/2019

No response from the counsel for the applicant. Shri CA Jasin Jose, for R1 and Shri Mohan Jacob George for R2 intimated their willingness to appear through VC. Adjourned to 28.6.2021 at 2.30 pm for further hearing as Part Heard.

21 TCP/52/KOB/2019 (CP/7/2017)

Learned counsel for the Petitioners Shri T.K. Bhaskar sought an adjournment through email stating that he is unable to access the documents due to covid 19 lockdown.

Adjourned to 29.06.2021.

22 IA/58/KOB/2019 IN CP/114/KOB/2019

Shri Sukumar Ninan Ommen, learned counsel for applicant/petitioner intimated his willingness to appear through VC. Shri PP Zibi Jose sought an adjournment stating that he was infected with Covid 19 and he is now taking rest. Shri Sumit Aggarwal intimated his willingness to appear through VC. No response from Advocate Sanjay appearing for respondents. List on 30.6.2021 at 2.30 pm for further hearing as

Part Heard.