https://www.taxtmi.com/caselaws?id=801932 Section 35 compensation for an investor who subscribed to securities on the basis of a fraudulent prospectus is ordinarily a personal claim against liable persons, including a statutory auditor. Where the company is undergoing insolvency and the alleged fraudulent conduct is addressed through Section 66 proceedings under the Insolvency and Bankruptcy Code, recoveries form part of the collective insolvency process for creditors. The claim consequently assumes an action-in-rem character and cannot be pursued through a separate civil suit for the exclusive benefit of one investor. Recourse lies through the collective Section 66 process. en-us Fri, 16 Oct 2026 00:00:00 +0530 Thu, 29 Oct 2026 06:33:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801932 Section 35 compensation for an investor who subscribed to securities on the basis of a fraudulent prospectus is ordinarily a personal claim against liable persons, including a statutory auditor. Where the company is undergoing insolvency and the alleged fraudulent conduct is addressed through Section 66 proceedings under the Insolvency and Bankruptcy Code, recoveries form part of the collective insolvency process for creditors. The claim consequently assumes an action-in-rem character and cannot be pursued through a separate civil suit for the exclusive benefit of one investor. Recourse lies through the collective Section 66 process. Case-Laws IBC Fri, 16 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801932