Appeal dismissed; KMP's fraudulent share transactions found to intend to defraud creditors, vitiating deals under Section 66(1)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....NCLAT dismissed the appeal, upholding the Adjudicating Authority's orders and affirming that no violation of natural justice occurred as the appellant was afforded multiple opportunities yet repeatedly delayed proceedings and failed to controvert the factual matrix. The Tribunal held that alleged fraudulent share transactions by the appellant, a KMP, demonstrated intent to defraud creditors and vitiated the impugned transactions, thereby invoking Section 66(1) of the Code. The court rejected the contention that Section 66(1) cannot operate absent Section 66(2), observing prior authority addressed only Section 66(2) and does not preclude independent operation of Section 66(1). Appeal dismissed with impugned orders sustained.....