Inventory write-off and fraudulent/wrongful trading allegations in corporate insolvency led to director liability principles applied and appeal dismis...
Adjudicating Authority correctly limited its inquiry to whether default had occurred and found the corporate debtor liable for repayment, thereby admitting the insolvency petition. The tribunal held that persistent refusal to permit stock and book audit and failure to cooperate with creditor-led restructuring efforts demonstrated deliberate non-cooperation; belated consent after takeover by the resolution professional did not excuse prior obstruction, and could not defeat admission. Because the authority considered the material particulars of debt, default date, and conduct relevant to restructuring, initiation of the corporate insolvency resolution process was affirmed and the appeal dismissed.
Adjudicating Authority correctly limited its inquiry to whether default had occurred and found the corporate debtor liable for repayment, thereby admitting the insolvency petition. The tribunal held that persistent refusal to permit stock and book audit and failure to cooperate with creditor-led restructuring efforts demonstrated deliberate non-cooperation; belated consent after takeover by the resolution professional did not excuse prior obstruction, and could not defeat admission. Because the authority considered the material particulars of debt, default date, and conduct relevant to restructuring, initiation of the corporate insolvency resolution process was affirmed and the appeal dismissed.
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