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2022 (12) TMI 147 - AT - Insolvency and BankruptcyJurisdiction - Whether Corporate Debtor had no authority to make any expenditure after initiation of the CIRP? - Section 19(2) of IBC - HELD THAT:- The Adjudicating Authority erred in rejecting the said transaction by observing that there is no proof that expenditure was for towards the diesel consumption. When explanation was given in the reply, for running two DG sets the expenditure of Rs.1,60,000/- towards diesel ought to have been accepted by the Adjudicating Authority. Further the Adjudicating Authority did not even advert to the explanation - there is no occasion for imposing any fine in the facts of the present case. The Adjudicating Authority has itself observed that the Corporate Debtor has cooperated with the IRP and RP, in para 23. We, thus, are satisfied that the direction to deposit Rs.1,60,000/- and fine of Rs.1,00,000/- deserved to be deleted and is hereby deleted. The law that after initiation of the CIRP the Directors are not entitled to operate any account and use any assets of the Corporate Debtor is well settled and present is a case where no appeal has been filed by the Resolution Professional challenging the order in which other two transactions have been accepted.
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