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TMI BlogFraudulent trading or wrongful trading [ Section 66 ]X X X X Extracts X X X X X X X X Extracts X X X X ..... vision relating to fraudulent or wrongful trading is divided into two parts. Section 66(1) of the IBC deals with fraudulent trading and section 66(2) of the IBC deals with wrongful trading. Business of Corporate Debtor carried to defraud creditors [ Section 66(1) of the IBC, 2016 ] If during the corporate insolvency resolution process or a liquidation process, it is found that an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or partner of the corporate debtor, as the case may be, shall be liable to make such contribution to the assets of the corporate debtor as it may deem fit, if- (a) before the insolvency commencement date, such director or partner knew or ought to have known that the there was no reasonable prospect of avoiding the commencement of a corporate insolvency resolution process in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IBC. Explanation .-For the purposes of this section a director or partner of the corporate debtor, as the case may be, shall be deemed to have exercised due diligence if such diligence was reasonably expected of a person carrying out the same functions as are carried out by such director or partner, as the case may be, in relation to the corporate debtor. Relevant Case Laws ..... X X X X Extracts X X X X X X X X Extracts X X X X
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