TMI Blog2020 (12) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... of CA-1342/2019 with CA-702/2019. All that the Adjudicating Authority was required to do was to take cognizance of the complaint emanating from the Liquidator in regard to the alleged preferential transactions and fraudulent trading/wrongful trading having occurred qua the Corporate Debtor - impugned order to the extent indicated, cannot be supported and the same is modified by providing that the Adjudicating Authority will inquire into such alleged dealings in accordance with law with expedition, preferably within two months. Appeal disposed off. - Company Appeal (AT) (Insolvency) No. 944 of 2020 - - - Dated:- 16-12-2020 - [Justice Bansi Lal Bhat] Acting Chairperson , [Justice Anant Bijay Singh] Member (Judicial) And [V. P. Singh] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of powers of the Adjudicating Authority to look into the transactions which attract the provisions of Sections 43/66 of the I B Code and explanation of the opposite party, if required, can be offered to the Investigating Agency. 4. It is submitted on behalf of the Appellant that while the jurisdiction of the Adjudicating Authority was rightly invoked by the Resolution Professional/ Liquidator as specifically provided by Section 43 and Section 66 of the I B Code, respectively, it was not permissible for the Adjudicating Authority to abdicate its powers and refer the matter to the Ministry of Corporate Affairs or an Investigating Agency. It is submitted that the allegations on the basis of which jurisdiction of the Adjudicating Autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 52. Even fraudulent tradings carried on by the Corporate Debtor during the insolvency resolution, can be inquired into by the Adjudicating Authority under Section 66. Section 69 makes an officer of the corporate debtor and the corporate debtor liable for punishment, for carrying on transactions with a view to defraud creditors. Therefore, NCLT is vested with the power to inquire into (i) fraudulent initiation of proceedings as well as (ii) fraudulent transactions. It is significant to note that Section 65(1) deals with a situation where CIRP is initiated fraudulently for any purpose other than for the resolution of insolvency or liquidation . 5. It is abundantly clear that allegations of preferential transactions as also fraudulent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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