KRIDHAN INFRASTRUCTURE PVT. LTD. (NOW KNOWN AS KRISH STEEL AND TRADING PVT LTD) versus VENKATESAN SANKARANARAYAN & ORS.

KRIDHAN INFRASTRUCTURE PVT. LTD. (NOW KNOWN AS KRISH STEEL AND TRADING PVT LTD) versus VENKATESAN SANKARANARAYAN & ORS.

The appellant was given multiple opportunities and undertook to deposit Rs 50 crores but failed to do so within the extended periods; time is critical under the IBC and indefinite delay would defeat the statute's object; accordingly the Civil Appeal is dismissed, the previously deposited amount of Rs 20 crores stands forfeited, and management is to revert to the liquidator to take steps in accordance with law.

Parties
Appellant: KRIDHAN INFRASTRUCTURE PVT. LTD. (NOW KNOWN AS KRISH STEEL AND TRADING PVT LTD); Respondents: VENKATESAN SANKARANARAYAN & ORS.
Jurisdiction
India
Judgment Date
01 March 2021
Procedural Posture
Civil Appeal / Judgment and Dismissal by the Supreme Court (final Disposal)
Outcome
Civil Appeal dismissed; order of liquidation upheld in substance
Legal Topics
Resolution Plan, Liquidation, Forfeiture, Escrow Deposits, Time Limits Under IBC, Stay of Orders
Insolvency and Bankruptcy Code, 2016 Corporate Insolvency Company Law Resolution Plan Liquidation Forfeiture Escrow Deposits Time Limits Under IBC +1 more

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Parties

KRIDHAN INFRASTRUCTURE PVT. LTD. (NOW KNOWN AS KRISH STEEL AND TRADING PVT LTD)

Appellant

VENKATESAN SANKARANARAYAN & ORS.

Respondents

Procedural Posture

Civil Appeal / Judgment and Dismissal by the Supreme Court (final Disposal)

Legal Issues

  1. 1 Whether the appellant should be permitted further time to comply with the Resolution Plan by depositing Rs 50 crores
  2. 2 Whether the order of liquidation should be set aside
  3. 3 Whether amounts deposited in escrow should be forfeited for non-compliance

Ratio Decidendi

The appellant was given multiple opportunities and undertook to deposit Rs 50 crores but failed to do so within the extended periods; time is critical under the IBC and indefinite delay would defeat the statute's object; accordingly the Civil Appeal is dismissed, the previously deposited amount of Rs 20 crores stands forfeited, and management is to revert to the liquidator to take steps in accordance with law.

Court Disposition

Civil Appeal dismissed; order of liquidation upheld in substance

Orders

  • Civil Appeal dismissed
  • Forfeiture of the amount of Rs 20 crores deposited in escrow