2019 (7) TMI 1629

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....tor alleging that during the year 2016-17 they entered into the transaction of trading purchase and sales of certain goods in fraudulent manner. He requested that the respondent - the Directors of the Corporate Debtor be directed to contribute sum of Rs. 2262.68 million towards assets of the Corporate Debtor. 2. The applicant stated that during the Corporate Insolvency Resolution Process of the Corporate Debtor he had appointed M/s. Price Water House Coopers Private Limited (PWC) as the special auditor to carry special review of the accounts of the Corporate Debtor. Said PWC submitted report dated 22.04.2018. The auditor opined that; "In light of the sequence of events and the evidences reviewed, discussions held and observation....

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.... or against any 3rd party. 6. I heard learned Advocate Mr. Sidhartha Sharma for the Resolution Professional, learned Advocate Mr. K.T. Thaker for the respondent/Suspended Board of Directors of the Corporate Debtor, learned Advocate S. Dwivedi for the State Bank of India. I perused the record. 7. It is seen that the Resolution Professional in concurrence with the Committee of Creditors directed the PWC to carry special review of the accounts of the Corporate Debtor. PWC carried a review of the accounts and submitted report to the Resolution Professional. It is not necessary to go into details of the report. Suffice to note the facts that PWC did not come to any definite conclusion that the transactions sought to be examined are the fra....

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....ansactions as fraudulent under Section 66 of IBC, 2016 only on the basis of non-availability of certain documents doesn't appear to be justified." 9. Section 66 of Insolvency and Bankruptcy Code, 2016 requires the Adjudicating Authority to make an order directing the Directors of the Corporate Debtor to make contribution to the assets of the Corporate Debtor only if; (i) It is found that any business of the Corporate Debtor has been carried on with intend to defraud the creditors of the Corporate Debtor or for any fraudulent purpose and; (ii) If it is found that the Board of Directors/respondent could have avoided the Corporate Insolvency Resolution Process of the Corporate Debtor and could have minimise the loss by....