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2022 (11) TMI 568 - AT - Insolvency and BankruptcyRejection of Application under Section 65 and 76 of I&B Code - rejection on the ground that Special Court established under IBC is alone competent to entertain Criminal Proceedings in respect of offence punishable under the provisions of the Code and the Adjudicating Authority has no role in implementing the penal provisions under the Code - HELD THAT:- Law is well settled, that the Adjudicating Authority with regard to allegation of offence in appropriate case, can always refer the recommendation to the Insolvency and Bankruptcy Board of India or to the Central Government to consider as to whether the case is made out for filing a complaint before the Special Court. The observations of the Adjudicating Authority is not approved to the extent that the Adjudicating Authority has no role in implementing the penal provisions in the Code. Limited role which can be performed by the Adjudicating Authority is to make a reference if there are allegations which need consideration by IBBI or Central Government for purpose of filing a complaint. In the facts of the present case where the Adjudicating Authority has found that there was pre-existing dispute between the parties and Application under Section 9 was not liable to be admitted - there are no reason to issue any direction to the Adjudicating Authority at this stage to consider making a reference to the Board or Central Government for prosecution under Section 76 Application disposed off.
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