Case Details
Case Name: Sakthi Energy Pvt. Ltd. Vs Servalakshmi Paper Ltd.
Court/Authority: National Company Law Tribunal, Division Bench-I, Chennai
Case Number: CP(IB)/514/CHE/2017
Application Numbers: IA(IBC)/766(CHE)/2026, IA(IBC)/605(CHE)/2026, IA(IBC)/1962/CHE/2025
Hearing Date: 25 May 2026
Coram: Hon'ble Shri. Sanjiv Jain (Member Judicial), Hon'ble Shri. Venkataraman Subramaniam (Member Technical)
Parties Involved
Petitioner/Applicant: Sakthi Energy Pvt. Ltd. (in IA/1962/CHE/2025, the Applicant is Registrar of Companies)
Respondent: Servalakshmi Paper Ltd. (Corporate Debtor)
Other Parties: Liquidator, Auction Purchaser, R1, R2 (unspecified respondents)
Legal Counsel: Shri. Karthik H Seshadri (for Liquidator), Ms. Vindhya Vasani (for Respondent), Shri. Mohammed Umar (for auction purchaser), Ms. Abitha Banu (for R1), Shri. Surya Teja Nalla (for R2), Shri. Avinash Krishnan Ravi (for RoC)
Issues / Allegations / Violations
Multiple interlocutory applications were heard together:
- IA/766/2026: Unspecified matter where respondent sought time to file reply
- IA/605/2026: Distribution of liquidation proceeds and handling of litigation costs
- IA/1962/2025: Registrar of Companies seeking access to company records for inspection under Section 206 of Companies Act, 2013
Findings & Observations
The Tribunal made several key determinations:
1. Regarding litigation costs: Directed the Liquidator to retain ₹2.0 Crores as provision for future litigation costs
2. Regarding record access: Noted that the Liquidator, being an officer appointed by the Tribunal, is duty-bound to provide documents pertaining to the liquidation period under Section 2(59) and Section 35 of IBC, 2016
3. Regarding pre-liquidation records: Observed that records from 2004-2005 onwards (prior to CIRP) cannot be directed to be provided by the Liquidator and should be sought from erstwhile directors or new management
4. Noted that the RoC has a duty to keep track of records and should endeavor to collect documents from appropriate parties
Penalties / Settlements / Directions
1. IA/766/2026: Respondent granted ten days to file reply. Matter listed for hearing on 01 June 2026
2. IA/605/2026:
- Respondents R1 & R2 undertook to return any monies received in distribution that they were not entitled to, specifically regarding outcome of Appeal No.178 of 2023 before NCLAT
- Directed respondents to release charge on assets of Corporate Debtor and hand over all original documents to Liquidator
- Matter listed for hearing on 01 June 2026
3. IA/1962/2025:
- Application disposed of with observations
- Liquidator directed to cooperate with RoC in retrieving records and handing over documents for inspection/inquiry/investigation
Corrective Actions & Future Obligations
1. Liquidator must cooperate with RoC in document retrieval and handover for inspection proceedings
2. Respondents must fulfill their undertaking to return wrongly distributed funds based on litigation outcomes
3. RoC must seek pre-liquidation records from erstwhile directors or new management rather than the Liquidator
Final Ruling & Enforcement
All three applications were disposed of with specific directions:
- IA/766/2026: Adjourned to 01 June 2026 for reply/hearing
- IA/605/2026: Adjourned to 01 June 2026 for further hearing
- IA/1962/2025: Application disposed of with observations and specific cooperation directives to the Liquidator