The National Company Law Tribunal (NCLT) has ruled against Shripal Morakhia, the founder of Smaaash Entertainment Private Ltd, in his plea alleging misconduct by the company’s resolution professional (RP). The tribunal clarified that it lacks jurisdiction to address RP misconduct and initiate disciplinary actions, stating that such matters fall under the purview of the Insolvency and Bankruptcy Board of India (IBBI).
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NCLT emphasized that it does not possess supervisory authority over IBBI and cannot issue directives to it. Consequently, Morakhia’s petition was rejected. Smaaash Entertainment Private Ltd faced insolvency proceedings in May 2022 due to outstanding dues, leading to Bhrugesh Amin’s appointment as RP.
Morakhia’s plea sought disciplinary action against Amin and challenged his appointment, alleging coercion and unethical demands during the insolvency resolution process. He accused Amin of demanding illegal gratification and obstructing Smaaash’s resolution process, which Amin vehemently denied.
