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2020 (12) TMI 1349 - NATIONAL COMPANY LAW TRIBUNAL HYDERABADPreservation and refund of the moneys realized under the PBGs - wrongful trading under section 66 of I&B Code - misconduct during corporate insolvency resolution process under section 70 of the Code - false representation to creditors under section 73 of the Code - HELD THAT:- It is crystal clear that the invocation of BGs by MEL vide its letter dated 18.10.2019, stating that the Applicant herein has failed to perform its obligations in terms of the agreements, is completely in terms of the above referred clause which was duly agreed to by the parties to the contract - Since the irrevocable BGs were invoked much prior to initiation of CIRP, this Adjudicating Authority cannot sit over the BGs already invoked at this juncture, more so in view of clause 2 of the BGs. The prayer is accordingly answered in the negative, holding that the invocation of BGs by MEL vide its letter dated 18.10.2019 is proper. Seeking to take cognizance of fraud and wrongful trading - section 66 of the Code - HELD THAT:- It is clear from a bare reading of the Section 66 of the Code that it only empowers the IRP/RP to prefer an Application against the erstwhile management of the Corporate Debtor. Hence, this Adjudicating Authority finds that the Applicant herein is not vested with any authority to seek the prayer under Section 66 of the code. Application disposed off.
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