Matter: Vikram Puri and Anr. v. Universal Buildwell Pvt. Ltd. and Anr.
Order dated: 28 February 2022
Summary:
In the present case, CIRP was initiated against Universal Buildwell Pvt. Ltd. (Universal) and a resolution professional was appointed. The two directors of Universal refused to co-operate with the resolution professional and refused to provide documents related to Universal. This led to the resolution professional filing an application before the NCLT seeking suspension of the directors. Despite an order having been passed by the NCLT and issuance of summons and bailable warrants, the directors failed to appear before the NCLT Registrar for submission of documents. Eventually, the NCLT issued non-bailable warrants of arrests against them. The order of the NCLT refusing to cancel the non-bailable warrants of arrest, on grounds that the directors had failed to comply with the order to appear before the Registrar, was challenged before the NCLAT.
The issue before the NCLAT was whether the NCLT has any jurisdiction to issue non-bailable warrant against any person or party. NCLAT observed that as per the NCLAT Rules and the Code of Civil Procedure, 1908, the NCLT at its discretion, can issue at any time a warrant either with or without bail for arrest of such person who without any lawful excuse, failed to attend or to produce the document in compliance with summons. NCLAT observed that in the present case, despite multiple opportunities, the directors of Universal had refused to appear before the Registrar and had refused to submit documents. Further, the reasons provided by the directors for such non-appearance was not acceptable. Therefore, NCLAT found no error with the NCLT’s order refusing to cancel the non-bailable warrants. Accordingly, the appeal was dismissed.
