https://www.taxtmi.com/caselaws?id=391946 The judgment clarifies that the Adjudicating Authority (NCLT) does not have the jurisdiction to directly order an SFIO investigation into fraud or siphoning of funds by a corporate debtor. Instead, the NCLT can refer the matter to the Central Government for consideration. The judgment emphasizes adherence to procedural requirements under the Companies Act and I&B Code, directing the Central Government to appoint Inspectors to investigate, with the option of involving the SFIO based on the investigation findings. The impugned orders directing SFIO investigations into two companies are modified, with the matter referred to the Central Government for proper investigation. en-us Mon, 02 Dec 2019 00:00:00 +0530 Wed, 06 May 2020 16:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=391946 The judgment clarifies that the Adjudicating Authority (NCLT) does not have the jurisdiction to directly order an SFIO investigation into fraud or siphoning of funds by a corporate debtor. Instead, the NCLT can refer the matter to the Central Government for consideration. The judgment emphasizes adherence to procedural requirements under the Companies Act and I&B Code, directing the Central Government to appoint Inspectors to investigate, with the option of involving the SFIO based on the investigation findings. The impugned orders directing SFIO investigations into two companies are modified, with the matter referred to the Central Government for proper investigation. Case-Laws Companies Law Mon, 02 Dec 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=391946