FIR online. Legal formats Download. file complaints online

Section 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 intent to defraud creditors of the corporate debtor or for any fraudulent purpose, the Adjudicating Authority may on the application of the resolution professional pass an order that any persons who were knowingly parties to the carrying on of the business in such manner shall be liable to make such contributions to the assets of the corporate debtor as it may deem fit.

(2) On an application made by a resolution professional during the corporate insolvency resolution process, the Adjudicating Authority may by an order direct that a director or partner of the corporate debtor, as the case may be, shall be liable to make such contribution to the assets of the corporate debtor as it may deem fit, if-

(a) before the insolvency commencement date, such director or partner knew or ought to have known that the there was no reasonable prospect of avoiding the commencement of a corporate insolvency resolution process in respect of such corporate debtor; and

(b) such director or partner did not exercise due diligence in minimising the potential loss to the creditors of the corporate debtor.

Explanation.-For the purposes of this section a director or partner of the corporate debtor, as the case may be, shall be deemed to have exercised due diligence if such diligence was reasonably expected of a person carrying out the same functions as are carried out by such director or partner, as the case may be, in relation to the corporate debtor.

Home

About Us

Privacy Policy

Disclaimer

Sitemap

Contact Us

Lodge cyber complaint online

Cyber Cell contact no, e-mail ID

Ration Card application form

Character Certificate format

Application online with RTO

Tenant Verification Online

Anticipatory Bail Application Format

TDS on Sale of Property No. 26QB

Maintenance petition 125 of CrPC

Cheque return Complaint format

Mutual Consent Divorce Petition

Private Trust Deed format

Traffic fine rate MV Act 2019

Check Traffic Challan and pay fine

Pay Taxes online through ePayment

Register Death online in all States

GST pay online, make payment

Register Child birth online

2023 (c) All Rights Reserved @aaptaxlaw.com