Authority: National Company Law Tribunal, Division Bench (Court-I), Chennai
Order Date: June 12, 2026
Case Overview
The matter involves an application (IA(IBC)/939/CHE/2026) filed by the Resolution Professional in the main insolvency petition CP(IB)/115/CHE/2019, where Mamtha Steels Corp is the petitioner and Yosmite Engineering Pvt Ltd is the corporate debtor. The Resolution Professional has alleged that the respondents (directors of Yosmite Engineering Pvt Ltd) carried on the affairs of the corporate debtor in a fraudulent and wrongful manner under Section 66 of the Insolvency and Bankruptcy Code, 2016. Specifically, transactions aggregating to Rs. 3,69,82,742 are alleged to be fraudulent under Sections 66 and 67 of the Code, with the claim that directors did not exercise due diligence in minimizing potential loss to creditors. The RP seeks declarations of fraud, repayment of the Rs. 3.69 crore amount to the corporate debtor's assets, and orders restricting respondents from starting similar business operations without creditor no-objection.
Final Outcome
The NCLT bench directed the Applicant/Resolution Professional to serve a copy of the application on the Respondents and file an affidavit of service. The application has been listed for appearance/reply/hearing on July 20, 2026. No substantive orders on the merits of the fraud allegations were passed in this hearing.
Topics: Insolvency Proceedings, Corporate Fraud Allegations