TaxTMI 
TaxTMI 
Fraudulent trading or wrongful trading [ Section 66 ]
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.... trading is divided into two parts. Section 66(1) of the IBC deals with fraudulent trading and section 66(2) of the IBC deals with wrongful trading. Business of Corporate Debtor carried to defraud creditors [ Section 66(1) of the IBC, 2016 ] * If during the corporate insolvency resolution process or a liquidation process, it is found that any business of the corporate debtor has been carried on....
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....ble to make such contribution to the assets of the corporate debtor as it may deem fit, if- * (a) before the insolvency commencement date, such director or partner knew or ought to have known that the there was no reasonable prospect of avoiding the commencement of a corporate insolvency resolution process in respect of such corporate debtor; and * (b) such director or partner did not exercise....
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....the case may be, shall be deemed to have exercised due diligence if such diligence was reasonably expected of a person carrying out the same functions as are carried out by such director or partner, as the case may be, in relation to the corporate debtor. Relevant Case Laws Axis Bank Ltd. Vs. Anuj Jain 2019 (8) TMI 140 - NCLAT Dated 01.08.2019 * The AA had allowed the application under section....