Insolvency Code Bars Corporate Fund Transfers During Moratorium, Mandates Full Refund of Unauthorized Payments

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....NCLAT upheld the moratorium provisions under IBC, finding that payments made by the appellant after CIRP commencement were unauthorized. The tribunal conclusively ruled that the suspended management cannot unilaterally deploy corporate funds without IRP authorization, even if claiming ordinary business operations. The court determined that Rs. 11.01 Cr transferred through nine RTGS and three cheque payments breached statutory moratorium. Consequently, the appellant and respondents were held jointly and severally liable to refund the unauthorized transactions, with the appeal being summarily dismissed.....