Tribunal examined allegations of fraudulent transactions u/s 66 ...

Tribunal Dismisses Fraud Allegations: Insufficient Proof in Share Conversion, Investments, and Rental Income Case.

October 4, 2024

Case Laws IBC Tri

Tribunal examined allegations of fraudulent transactions u/s 66 of Insolvency and Bankruptcy Code against corporate debtor. Conversion of share application money to unsecured loan, conspicuous investments into related parties, and unaccounted rental income were scrutinized. Tribunal held fraud must be established beyond reasonable doubt, mere suspicion insufficient. Conversion of share money to debt not fraudulent. Investments in related parties explained, not prejudicial, complied with Companies Act. Cash withdrawals for salaries before 2016, not proximate to insolvency. Rental income agreements not proven fraudulent. Resolution Professional failed to establish fraudulent trading case u/s 66. Application dismissed due to lack of evidence of fraud.

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Tribunal examined allegations of fraudulent transactions u/s 66 ...

Tribunal Dismisses Fraud Allegations: Insufficient Proof in Share Conversion, Investments, and Rental Income Case.

October 4, 2024

Case Laws IBC Tri

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