TMI Blog2018 (10) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid, it cannot be stated that the Adjudicating Authority is not empowered to direct the ex-Directors not to leave the country without prior permission of the Adjudicating Authority. Further any order is passed under the law it cannot be held to be violative of Article 21 of Constitution of India. Further, we find that the Adjudicating Authority has not stayed the movement of the appellants, but has only observed that if they intend to leave the country should take the permission of the Adjudicating Authority. Therefore, the order can not be held to be an order of permanent injunction on the appellants. - COMPANY APPEAL (AT)(INSOLVENCY) NO.502 OF 2018 - - - Dated:- 30-8-2018 - Mr. S.J. Mukhopadhaya, Chairperson And Mr Bansi Lal Bhat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontention of the applicant is that if any, restrain order is not passed against the Exdirector Nos 2 to 5 then in that event they may leave the country consequent upon which it is difficult to unearth the fraud undertaking by the Ex-Director, as they have syphoned out huge money of the company and to that effect the RP has made various communication but of result. Ld. Lawyer appearing on behalf of the RP relied upon two citations, similar case (i) Hon ble Supreme Court of India (ii) Hon ble NCLT, Mumbai Bench, Mumbai which are as under: The Hon ble Supreme Court of India in Writ Petition (s) (Civil(S) No.744/2017 wherein, it is held: ( c) . the managing Director and Directors JIL and JAL shall not permit to leave the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned order is also against Article 21 of Constitution of India. 4. We have heard learned counsel appearing on behalf of the appellants and perused the record. In the present case we are not going to decide as to what will be the outcome of the investigation of the CBI with respect to ex-Directors of the Corporate Debtor including the appellants. However, if they leave the country, it may affect the investigation. 5. At this stage it is desirable to refer Section 66 of the Insolvency and Bankruptcy Code, which is as under:- 66.Fraudulent trading or wrongful trading-(1) If during the corporate insolvency resolution process or a liquidation process, it is found that any business of the corporate debtor has been carried on with i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aforesaid provision, after the investigation if any report is filed against the Ex-Director it will always open to the Adjudicating Authority to pass appropriate order under Section 66 read with Section 67 of the I B Code. 6. In view of provisions aforesaid, it cannot be stated that the Adjudicating Authority is not empowered to direct the ex-Directors not to leave the country without prior permission of the Adjudicating Authority. 7. Further any order is passed under the law it cannot be held to be violative of Article 21 of Constitution of India. Further, we find that the Adjudicating Authority has not stayed the movement of the appellants, but has only observed that if they intend to leave the country should take the permission of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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