Authority: National Company Law Tribunal, Mumbai Bench, Court Room No. 1 (Sh. Prabhat Kumar, Member (Technical) and Sh. Sushil Mahadeorao Kochey, Member (Judicial))

Order Date: June 16, 2026

Case Overview

The matter pertains to Interlocutory Application IA(I.B.C)/2471(MB)2026 filed by the Resolution Professional (M/s Megha Agrawal) in the main insolvency petition C.P. (IB)/698(MB)2025 (J.C. Flowers Asset Reconstruction Private Limited vs. SMAAASH LEISURE LIMITED). The application was filed under Section 19(2) & 7 of the Insolvency and Bankruptcy Code, 2016 and Regulation 30, seeking directions against the Suspended Board of Directors and the Statutory Auditor of Smaaash Leisure Limited for their "persistent and wilful non-cooperation" in the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. The matter was coming up for hearing for the first time, with only the applicant's counsel present and no representation for the respondents.

Final Outcome

The NCLT issued several interim directions and adjourned the matter to June 30, 2026, for further consideration. The tribunal directed its Court Officer to issue formal notices to all respondents, intimating them of the next hearing date and requiring them to file replies. The applicant (Resolution Professional) was also directed to serve notices and a copy of the application to all respondents through all available means (Speed Post, E-mail, etc.) and file an affidavit of service. Most significantly, the tribunal issued specific compliance directions: Respondent No. 4 (M/s L. J. Kothari & Co., Statutory Auditor) was ordered to provide the trial balance, balance sheet groupings of financial statements audited to date, and details relating to the affairs of the Corporate Debtor obtained during the audit. Respondent Nos. 1 to 3 (Mr. Shripal Morakhia, Mr. Rupesh Harishchandra Mohite, and Mr. Shrinath Subhash Gaikwad) were directed to provide all statutory records, books of accounts, cash in hand, Login IDs & Passwords for Income Tax and GST, and particulars of all bank accounts of the Corporate Debtor "without any further delays." All respondents (1-4) were directed to appear in person on the next hearing date (June 30, 2026) to report compliance with these orders.

Topics: Corporate Insolvency, Director Non-Cooperation, Regulatory Compliance