Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2020 (9) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 745 - Tri - Insolvency and BankruptcyUnauthorized and illegal withdrawal of amount made by the ex-management of the Corporate Debtor - CIRP process - Section 66(1) of I&B Code - HELD THAT:- This Bench does not have any doubt that in terms of Section 66(1) of the Code, the Respondents No. 1, 2 and 3, during the Corporate Insolvency Resolution Process period, carried out these transactions with intent to defraud the creditors of the Corporate Debtor. This case is fully covered under Section 66(1) of the Code. This Bench is also satisfied that the ex-directors were aware of the Moratorium Order of 17.09.2019 under Section 14 of the Code. This Bench finds the ex-directors of the Corporate Debtor Company to be guilty of willful disobedience of the Order of this Bench dated 17.09.2019. The Respondents No. 1 and 2, i.e., the ex-directors of the Corporate Debtor being found violating the Moratorium imposed under Section 14 of the Code, are punishable with imprisonment for a term which shall not be less than 3 years, but may extend to 5 years or with fine which shall not be less than ₹ 1 Lakh but may extend to ₹ 3 lakh or with both. Respondent No. 3, who has connived and is the beneficiary of the fraudulent transaction and is squarely covered under Section 66(1) of the Code, shall deposit ₹ 2,42,54,121/- within a period of 2 weeks in the Corporate Debtor’s account at Oriental Bank of Commerce - Respondents No. 1 and 2 to deposit a sum of ₹ 9,192/- withdrawn unauthorizedly and illegally despite the imposition of Moratorium. The amount be deposited within a period of 2 weeks in the Corporate Debtor’s account at Oriental Bank of Commerce - Respondents No. 1 and 2, each to pay a fine of ₹ 1,00,000/- for violating the Moratorium under Section 14 of the Code. The amount be deposited within a period of 2 weeks in the Corporate Debtor’s account at Oriental Bank of Commerce.
|