Related party dispute in the matter of Spade Financial Services Limited Vs. Hari Krishan Sharma – NCLAT New Delhi
NCLAT has uphled the AA decision and has held that section 5(24)(f) of the Code, 2016 provides that anybody Corporate whose Board of Directors, Managing Director or Manager, in the ordinary course of business, acts on the advice, directions or instructions of a Director, Partner or Manager of the Corporate Debtor. Pertinently during the transaction period of 2010 to 2013, Spade Financial Services Private Limited under Mr Arun Anand was making substantial financial arrangements on behalf of AKME Projects Limited by acting on the advice, directions or instructions of the Director and Management of the AKME Projects Limited, being Mr Sonal Anand and Mr Anil Anand, thereby clearly falling under the provisions of Section 5(24)(f) of I&B Code, 2016.
