https://www.taxtmi.com/caselaws?id=782335 NCLAT set aside the NCLT order that had directed suspended directors of the CD to contribute to the liquidation estate on the ground of fraudulent transactions under Section 66 of the IBC. The Appellate Tribunal held that purchase of unlisted shares by directors engaged in financial intermediation was a commercial decision, and mere loss or non-exercise of due diligence could not, by itself, establish fraudulent intent. It emphasized that transactional audit reports are not conclusive evidence and that a higher degree of proof is required to label transactions as fraudulent. Consequently, the appeal was allowed and the impugned directions were quashed. en-us Thu, 25 Sep 2025 00:00:00 +0530 Fri, 28 Nov 2025 08:24:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782335 NCLAT set aside the NCLT order that had directed suspended directors of the CD to contribute to the liquidation estate on the ground of fraudulent transactions under Section 66 of the IBC. The Appellate Tribunal held that purchase of unlisted shares by directors engaged in financial intermediation was a commercial decision, and mere loss or non-exercise of due diligence could not, by itself, establish fraudulent intent. It emphasized that transactional audit reports are not conclusive evidence and that a higher degree of proof is required to label transactions as fraudulent. Consequently, the appeal was allowed and the impugned directions were quashed. Case-Laws IBC Thu, 25 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782335