NCLAT affirmed the lower tribunal's order regarding unauthorized ...

Corporate Directors Illegally Withdraw Funds During Insolvency Moratorium, Ordered to Repay Full Amount with Interest

April 26, 2025

Case Laws IBC AT

NCLAT affirmed the lower tribunal's order regarding unauthorized withdrawal of Rs. 32 lakhs from corporate debtor's account during moratorium period under Section 14 of IBC. The appellants demonstrated persistent non-cooperation and brazen disobedience of prior orders. The tribunal held that the withdrawal violated IBC provisions, rendering the suspended directors liable to deposit the entire amount with 12% per annum interest into the liquidation estate. The appeal was summarily dismissed as lacking substantive legal merit, with the order becoming final due to non-challenge of previous judicial determinations.

View Source

← Previous Next →

NCLAT affirmed the lower tribunal's order regarding unauthorized ...

Corporate Directors Illegally Withdraw Funds During Insolvency Moratorium, Ordered to Repay Full Amount with Interest

April 26, 2025

Case Laws IBC AT

You may also like:

Dishonor of Cheque - criminal liability of natural persons - In the case on hand, the insolvency process was initiated by NCLT on 10.07.2017 and moratorium has been...

NCLAT dismissed the Section 7 application filed by the Appellant-Debenture Trustee against the Corporate Debtor. The Tribunal found no valid debt due or payable during...

HC determined that moratorium period under IBC Section 14 must be excluded when calculating limitation period for restoration applications under CPC Order IX Rule 9....

CIRP - Home Buyers - Moratorium against the company has been ordered - The Supreme Court's decision in this case clarifies that the moratorium u/s 14 of IBC does not...

Dishonour of Cheque - Continuation of proceedings during moratorium period - vicarious liability of director - proceedings under Section 138 or 141 of the NI Act -...

Dishonor of Cheque - ongoing moratorium period as contemplated u/s 14 of the IBC - The moratorium provision not extending to persons other than the corporate debtor. In...

Seeking direction against the Appellant Banks and Financial Institutions to reimburse all the amounts appropriated by them after the Insolvency Commencement Date -...

The Income Tax Appellate Tribunal dismissed the appeals filed by a company in liquidation process against income tax proceedings due to the moratorium imposed u/s 14 of...

The High Court ruled that security interests over assets of a corporate debtor to secure amounts due under a judgment or decree must give way to the provisions of the...

Once symbolic possession of the property is taken over by the appellant under the SARFAESI Act, 2002, the moratorium u/s 96 of the Insolvency and Bankruptcy Code...

The Appellate Tribunal held that the Annual Mine Closure Cost (AMCC) deposited by the Corporate Debtor in an Escrow Account belongs to the Corporate Debtor and cannot be...

Restoration of petition, which has been withdrawn - There cannot be a dispute on the inherent power of the NCLT to direct restoration of an application which had been...

CIRP Proceedings against the Personal Guarantors - the ‘Adjudicating Authority’ / ‘Tribunal’, has ‘jurisdiction’, to ‘entertain’/’initiate’, the ‘Insolvency Proceedings’...

Liquidation of Corporate Debtor - the corporate insolvency process in the instant case is totally in disregard of the provision of the Code and Regulations thereunder....

Initiation of insolvency resolution of a personal guarantor of the Corporate debtors - The law doesn't envisage that the insolvency resolution of the personal guarantor...

Quick Updates: