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

Scrutinizing corporate debtor's alleged fraudulent transactions, tribunal clears the air.

Case Laws IBC

October 4, 2024

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 ...

Scrutinizing corporate debtor's alleged fraudulent transactions, tribunal clears the air.

Case Laws IBC

October 4, 2024

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