In landmark Judgment on the interplay of the Companies Act, 2013 ("Companies Act") and the Insolvency and Bankruptcy Code, 2016 ("Code"), on 31.07.2024, Ld. National Company Law Tribunal ("Ld. NCLT") passed an Order, under an application filed under Section 19 of the Code, issuing a notice under Section 213(2) of the Companies Act against the promoters of the Corporate Debtor to investigate if affairs of the Corporate Debtor was conducted to defraud the creditors. The NCLT Order provides relief to the Resolution Professional against the errant erstwhile management and discourages actions adopted by the erstwhile management in creating impediments in CIRP of the Corporate Debtor.
Our disputes team comprised: Lead Partner – Varghese Thomas, Partners – Kunal Kaul and Fatema Kachwalla, and Associate – Virgil Braganza.
Originally published 13 August 2024
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