Procedural Direction To File An Affidavit On Ledger Accuracy Is Not Appealable U/S 61 Of IBC: NCLAT Chennai
Mohd.Rehan Ali
19 July 2025 2:40 PM IST
The National Company Law Appellate Tribunal, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member – Judicial) and Jatindranath Swain (Member – Technical), has held that the procedural direction requiring the appellant to file an affidavit confirming the accuracy of certain ledger transactions could not be appealed. The appeal was preferred u/s 61 of the...
The National Company Law Appellate Tribunal, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member – Judicial) and Jatindranath Swain (Member – Technical), has held that the procedural direction requiring the appellant to file an affidavit confirming the accuracy of certain ledger transactions could not be appealed. The appeal was preferred u/s 61 of the IBC.
Background of the Case
The appellant, who happens to be the erstwhile director of Samaara Leathers Pvt. Ltd., has challenged the NCLT's order directing him to file an affidavit confirming the accuracy of ledger transactions for FY 2017-18 and 2018-19. The order was passed subsequent to the findings of the forensic audit, which pointed out discrepancies in the financial records of the company.
The impugned order was issued in response to a section 66 petition filed by the liquidator. In the said petition, the liquidator alleged fraudulent transactions, underreported ledger balances, and unaccounted cash. It also sought recovery of Rs. 27 lakhs.
Contention of the Parties
The appellant alleges that the allegations made by the liquidator are unsubstantiated and there is a flaw in the methodology adopted in the said audit. The auditor has endorsed the transactions as part of regular business operations.
The appellant also sought a condonation of 14 days delay in filing the appeal, saying it was seeking legal advice before filing the appeal.
The liquidator highlighted the discrepancies found during the forensic audit. He contended that the impugned order was aimed at confirming the factual details through an affidavit and didn't determine the appellant's liability.
Observations of the Tribunal
The tribunal observes that the nature of the order issued by the NCLT was exclusively fact-finding direction only for the purpose of ensuring the truthfulness of the ledger entries, which was attempted to be established by the filing of an affidavit by the appellant for the purpose of confirming the accuracy of the transaction in the ledger.
The NCLAT observed that the nature of the impugned order is merely procedural in nature, and it neither impinges upon any right of the appellant or the opposite nor creates any obstacle to any right of the parties.
The bench lastly observed that since the order is procedural in nature, the appeal u/s 61 of the IBC, 2016, is not maintainable.
The NCLAT also clarified that the dismissal of the appeal did not reflect any opinion on the merits of the case, and the NCLT will decide on the affidavit and other evidence independently.
Case Title: Medekar Mohamed v. K. Muruganandan (Liquidator of Samaara Leathers Private Limited)
Case Number: Company Appeal (AT) (CH) (Ins) No. 275/2025
For Appellant: Mr. Pawan Jhabakh, Advocate
Bench: Justice Sharad Kumar Sharma (Member – Judicial) and Jatindranath Swain (Member – Technical)
Judgment Date: 23/06/2025