NCLT Guwahati Directs Suspended Directors Of Sree Bajrang Infracon To Cooperate With Liquidator

The Guwahati Bench of the National Company Law Tribunal (NCLT) on 10 March directed the suspended directors of Sree Bajrang Infracon Pvt Ltd (Corporate Debtor) to fully cooperate with the Liquidator, Purshotam Gaggar, and hand over all records and assets, holding that non-cooperation undermines the time-bound insolvency process under the Insolvency and Bankruptcy Code, 2016.

A Bench comprising Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh emphasised that personnel of the Corporate Debtor, including suspended directors, have a statutory obligation to assist the Interim Resolution Professional, Resolution Professional, or Liquidator.

The Tribunal held:

“A mere perusal of the ingredients of Section 19(2) of IBC, 2016 would latently impose an obligation on the personnel and promoters of the Corporate Debtor to extend all assistance and cooperation which the Interim Resolution Professional will require in running / managing the affairs of the Corporate Debtor.”

The application was filed by the IRP of the Corporate Debtor seeking directions against the suspended directors for non-cooperation during the corporate insolvency resolution process. The Liquidator, Purshotam Gaggar, was later substituted and pursued the application.

The Corporate Insolvency Resolution Process (CIRP) was initiated on 12 January 2024. The IRP requested financial records, asset details, and other key documents from the suspended management. However, the directors furnished only partial documents and, despite repeated reminders and Tribunal directions, failed to provide complete information or cooperate with the Liquidator.

The Tribunal granted multiple opportunities, including directions for personal appearance and compliance, yet substantial documents, assets, and clarifications remained outstanding. Non-cooperation persisted even after some documents were later submitted.

Subsequently, the Corporate Debtor was pushed into liquidation on 20 December 2024, and the Liquidator continued to face non-cooperation from the suspended directors, who failed to hand over records and assets.

The Tribunal explained that “personnel” includes employees, directors, and key managerial personnel, all of whom must assist the IRP and Liquidator in effectively performing their duties. It reiterated:

“Non-compliance with such statutory duty impedes the time-bound process envisaged under the Code and cannot be countenanced.”

The Tribunal concluded:

“…upon perusal of the material available on record, this Bench is satisfied that despite repeated directions of this Tribunal and opportunities granted from time to time, the Respondents, being members of the suspended Board of Directors of Sree Bajrang Infracon Pvt Ltd, have failed to extend the necessary cooperation as mandated under the provisions of the Insolvency and Bankruptcy Code, 2016.”

Accordingly, the NCLT allowed the application and directed the suspended directors to fully cooperate with the Purshotam Gaggar, and hand over all necessary records and assets of Sree Bajrang Infracon Pvt Ltd within 15 days.

It further clarified that failure to comply would invite appropriate action against the members of the suspended management.

For Petitioner: Advocate Nirmal Goenka

For Respondents: Advocate R Dubey and CS Biman Debnath