https://www.taxtmi.com/caselaws?id=784077 The dominant issue was whether the directors' conduct attracted liability for fraudulent or wrongful trading under s.66 IBC, warranting an order to contribute to the corporate debtor's assets. The AT held that while a transactional audit report is not conclusive, it is a valuable evidentiary basis when founded on audited records and cannot be ignored; here, the directors failed to establish that the impugned transactions were in the ordinary course. Given the timing during pending insolvency, the abnormal sale of substantial gold inventory on unsecured credit, and the apparent design to keep assets beyond creditors' reach, the transactions were found to be knowingly executed with dishonest intent to defraud creditors, constituting fraudulent trading. The appeal was dismissed and the contribution direction was upheld. en-us Thu, 04 Dec 2025 00:00:00 +0530 Mon, 29 Dec 2025 08:56:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784077 The dominant issue was whether the directors' conduct attracted liability for fraudulent or wrongful trading under s.66 IBC, warranting an order to contribute to the corporate debtor's assets. The AT held that while a transactional audit report is not conclusive, it is a valuable evidentiary basis when founded on audited records and cannot be ignored; here, the directors failed to establish that the impugned transactions were in the ordinary course. Given the timing during pending insolvency, the abnormal sale of substantial gold inventory on unsecured credit, and the apparent design to keep assets beyond creditors' reach, the transactions were found to be knowingly executed with dishonest intent to defraud creditors, constituting fraudulent trading. The appeal was dismissed and the contribution direction was upheld. Case-Laws IBC Thu, 04 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784077