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2022 (12) TMI 498 - AT - Insolvency and BankruptcyFraudulent trading/transactions - wilful default - stand of the Appellants is that the Adjudicating Authority, (National Company Law Tribunal, Kochi Bench, Kerala) had failed to distinguish between Section 66 (1) of the I&B Code, 2016 for Fraudulent Trading and Section 66 (2) of the I&B Code, 2016 for Wrongful Trading, while holding the Directors, jointly or severally, liable without reference to any particular Sub-Section of Section 66 or the Conditions to be satisfied, while invoking each particular Sub-Section - HELD THAT:- From the contents of the Forensic Auditor’s Report, the Status Report filed by the 1st Respondent / the Resolution Professional, and also on the basis of facts and circumstances of the instant Case, it is latently and patently evident that Appellants / Respondents had indulged in carrying on the Business of the Corporate Debtor in a dishonest and fraudulent manner, with a view to Defraud the Creditors and because of the Fraudulent Transactions in the subject matter, in issue,, the Appellants / Respondents are responsible in a Joint and Several Manner, to pay a sum of Rs.2,94,77,269/- only with an interest at 12% per annum, in respect of the Resolution Professional’s Account of the Corporate Debtor, of course, within Six Weeks, from the date of passing of this Judgment. The conclusion arrived at by the Adjudicating Authority, (National Company Law Tribunal, Kochi Bench, Kerala), holding that the Appellants / Respondents are required to make good the Loss, caused to the Creditors of the Corporate Debtor, because of the fact that the Transactions, mentioned in the Forensic Auditor’s Report, as detailed in this Judgment are without any simmering doubt, partake the character of Fraudulent Transaction and, as such, the Appellants / Respondents, are personally liable to pay for Knowingly and Dishonestly, committing this malevolent acts / misdeeds, are free from any Legal Flaw. Appeal dismissed.
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