https://www.taxtmi.com/caselaws?id=368373 A creditor may seek investigation into a company's affairs where credible material shows prima facie fraud, diversion of funds, or conduct prejudicial to creditors. The Tribunal accepted the creditor's maintainability, rejected the delay objection as the petition was filed within a reasonable time from the relevant balance sheets, and found the sickness-regime objection inapplicable on the facts. On the company's balance sheets, audit remarks, interest-free advances to group concerns, stock and working-capital mismatches, and other suspicious transactions, the material was sufficient to justify deeper scrutiny. Investigation was therefore ordered. en-us Wed, 29 Aug 2018 00:00:00 +0530 Wed, 23 Jan 2019 12:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=368373 A creditor may seek investigation into a company's affairs where credible material shows prima facie fraud, diversion of funds, or conduct prejudicial to creditors. The Tribunal accepted the creditor's maintainability, rejected the delay objection as the petition was filed within a reasonable time from the relevant balance sheets, and found the sickness-regime objection inapplicable on the facts. On the company's balance sheets, audit remarks, interest-free advances to group concerns, stock and working-capital mismatches, and other suspicious transactions, the material was sufficient to justify deeper scrutiny. Investigation was therefore ordered. Case-Laws Companies Law Wed, 29 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=368373