Scope of IBC - dishonor of cheque - compounding of offences - ...
Insolvency and Bankruptcy
August 5, 2022
Scope of IBC - dishonor of cheque - compounding of offences - Recovery of the dues - Section 65(1) of the Code does not expressly mention ‘Debt Recovery Action’ under ‘for any purpose other than resolution of insolvency..’, keeping in view the factual occurrence of the events of this particular matter, we hold that the ‘intent’ may not be a ‘malafide intent’, but is nevertheless a fundamental attempt to obtain an edge/ advantage / an upper hand in ‘recovering their dues’. - ‘A Recovery Proceeding’ of this nature does fall within the scope and ambit of the words ‘for any purpose other than Resolution’, as defined under Section 65 (1) of the Code - AT
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