https://www.taxtmi.com/caselaws?id=774420 NCLAT Principal Bench dismissed appeal challenging fraudulent trading findings under Section 66 IBC. Corporate debtor's LED bulb transactions during FY 2016-17 involved fictitious parties, inflated turnover, and siphoned funds totaling Rs.3.18 crores actual loss. Appellant's commercial intent arguments failed against forensic audit evidence showing deliberate deception through fabricated entries and non-existent entities. Court distinguished case from Regen Powertech, finding no bona fide belief in loss reversal. Direction to contribute Rs.3.18 crores upheld as proportionate remedial measure based on arithmetically precise loss calculation, not punitive assessment. Adjudicating Authority's jurisdiction and reasoning validated. en-us Thu, 03 Jul 2025 00:00:00 +0530 Wed, 09 Jul 2025 08:50:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774420 NCLAT Principal Bench dismissed appeal challenging fraudulent trading findings under Section 66 IBC. Corporate debtor's LED bulb transactions during FY 2016-17 involved fictitious parties, inflated turnover, and siphoned funds totaling Rs.3.18 crores actual loss. Appellant's commercial intent arguments failed against forensic audit evidence showing deliberate deception through fabricated entries and non-existent entities. Court distinguished case from Regen Powertech, finding no bona fide belief in loss reversal. Direction to contribute Rs.3.18 crores upheld as proportionate remedial measure based on arithmetically precise loss calculation, not punitive assessment. Adjudicating Authority's jurisdiction and reasoning validated. Case-Laws IBC Thu, 03 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774420