Mumbai: The National Company Law Tribunal (NCLT) has issued a four-week ultimatum to the former directors of Goli Vada Pav Private Limited, instructing them to cooperate with the Resolution Professional (RP) overseeing the company’s insolvency proceedings.
The RP, Vinod Radhakrishnan Nair, has accused the directors of failing to assist in the process, including the refusal to hand over company vehicles critical to the proceedings. If they do not comply, the RP has been granted permission to file a contempt application.
Nair, appointed as RP under Section 19(2) of the Insolvency and Bankruptcy Code, revealed that when he visited the registered office of the company, he discovered that the office actually belonged to a third party, CA Abhay Nair, who denied possessing any documents related to the company. The RP made multiple attempts to obtain necessary documents and assets from Venkatesh Iyer, the former Managing Director of Goli Vada Pav, but received no response.
In a December 2023 email, RP requested critical documents, including franchise agreements, information on income sources, and financial records. Despite several reminders, Iyer neither provided the requested documents nor acknowledged the RP’s communications. Furthermore, the RP sought possession of the company’s vans, but Iyer claimed to be unaware of their location.
The RP’s application to the NCLT stated that the former directors were evading their legal duty to cooperate with the insolvency process, which has caused significant delays in the Corporate Insolvency Resolution Process (CIRP). RP expressed concerns that the lack of cooperation was hindering his efforts to complete the proceedings within the legally required timeframe.
In his defense, Iyer claimed that the company’s registered office had been relocated due to financial difficulties and shifting circumstances during the COVID-19 pandemic. He explained that Goli Vada Pav initially had a well-furnished office in Vikhroli, Mumbai, but it was dismantled by Clarion Group, which had joined the company as an investor. As the company struggled to stay afloat during the pandemic, it moved to Navi Mumbai, but eventually had to vacate due to unpaid rent.
Iyer further claimed that the records and assets had been moved by the Clarion Group to another office in Mulund. He asserted that he had made efforts to assist the RP, including connecting him with relevant personnel and providing account statements. In response to the issue of missing vehicles, Iyer stated that he had already provided details of the nine vehicles, including their locations and the names of the people in possession of them.
After hearing the arguments advanced, the NCLT ruled that the former directors must fully cooperate with the RP within four weeks. Should they fail to do so, the RP has been authorized to file a contempt application against them.
