The appeal was filed by members of the Suspended Board of Directors of the Corporate Debtor (CD) against an order dated 09.05.2023 passed by the National Company Law Tribunal (NCLT), Delhi Bench. The NCLT order designated certain transactions by the appellants as fraudulent and directed them to contribute Rs. 28 lakhs to the liquidation estate of the CD.
The NCLT directed the appellants to contribute Rs. 28 lakhs to the liquidation estate of the CD, deeming certain transactions as fraudulent.
The appellants purchased shares of Uno Industries Limited and Jayant Mercantile Company Limited.
The Respondent liquidator filed an application under Section 66 of the IBC alleging fraudulent transactions.
The appellants argued that they exercised due diligence and believed the share prices would increase.
The respondent argued that the appellants did not exercise due diligence and disregarded RBI and SEBI regulations.
The shares purchased were not actively traded at the time of purchase.
The liquidator was deleted from the array of parties and Shree Vishvamurte TradInvest Pvt. Ltd. was impleaded as Respondent.
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Order passed by the National Company Law…
Corporate Insolvency Resolution Process (CIRP)…
The appeal was filed by members of the Suspended Board of Directors of the Corporate Debtor (CD) against an order dated 09.05.2023 passed by the National Company Law Tribunal (NCLT), Delhi Bench. The NCLT order designated certain transactions by the appellants as fraudulent and directed them to contribute Rs. 28 lakhs to the liquidation estate of the CD.
The NCLT directed the appellants to contribute Rs. 28 lakhs to the liquidation estate of the CD, deeming certain transactions as fraudulent.
The appellants purchased shares of Uno Industries Limited and Jayant Mercantile Company Limited.
The Respondent liquidator filed an application under Section 66 of the IBC alleging fraudulent transactions.
The appellants argued that they exercised due diligence and believed the share prices would increase.
The respondent argued that the appellants did not exercise due diligence and disregarded RBI and SEBI regulations.
The shares purchased were not actively traded at the time of purchase.
The liquidator was deleted from the array of parties and Shree Vishvamurte TradInvest Pvt. Ltd. was impleaded as Respondent.
…Order passed by the National Company Law…
Corporate Insolvency Resolution Process (CIRP)…