Corporate debtor's financial assistance during distress deemed normal commercial transaction under Section 66 IBC 2016

The SC dismissed an appeal in a CIRP matter involving disputed transactions with a corporate debtor. The appellant argued that financial assistance provided during distress constituted normal commercial transactions, not fraudulent ones. The NCLAT had upheld the original order finding no error in the determination. Under Section 66 of the I&B Code 2016, the SC found no grounds to interfere with the concurrent findings below, concluding there was no malafide intention or wilful misconduct established, and dismissed the appeal.

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The Supreme Court, through Justices J. B. Pardiwala and R. Mahadevan, condoned the delay in re-filing the appeals but found "no good reason to interfere with the impugned orders dated 29-03-2023 & 27-09-2023" of the National Company Law Appellate Tribunal, New Delhi. Consequently, the appeals were dismissed, and all pending applications were disposed of.

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