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2021 (11) TMI 1034 - NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCHSeeking removal of Respondent Nos. 3 to 7 from the CoC - there is neither any default nor any debt is owed - reconstitution of cancel entire voting rights of Respondent Nos. 3 to 7 and undertake appropriate changes to the present voting rights of the rest of the CoC members in view of the said fraud perpetrated by the Respondents - HELD THAT:- It is very clear to the Bench that R1 and R7 in the above-mentioned transactions have defrauded the Corporate Debtor Company and such an act is squarely covered under Section 66 (1) and 66 (2) of the Code - R1 and R2 who are the suspended directors in their defense have mentioned that the forensic report is incomplete and that the auditors have not conducted detailed review of the operations of the Corporate Debtor company. The Bench notes that the Respondent Number 1 and 2 who are the suspended directors have raised baseless technical objection regarding choice of sampling method and sampling technique. It is clear to the Bench that they have no defense regarding their conduct in the whole matter wherein they had fraudulently taken out money from the Corporate Debtor’s Bank account and had paid back same amount to the related parties of the alleged homebuyer. The Bench therefore notes that R7 has not provided any proper explanation regarding its collusion and being a party to the fraudulent transactions. Removal of R3 to R7 from CoC and also as financial Creditor/ Home- Buyer, as there is no debt own to them by the Corporate Debtor company and purported infusion of funds by each of these Respondent were returned back to them through their related parties (relatives) on the same day or the next day by Respondent Number 1 and 2 who are suspended directors of the Corporate Debtor company - these transactions of purported creditors are vitiated by fraud, therefore all these transactions are declared as null and void. Petition disposed off.
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