Sharing of common infrastructure, for which the costs has been borne by Corporate Debtor, certainly results into undue benefit having been given to the related parties at the cost of the Corporate Debtor, and such benefit certainly has an element of fraudulent intent – CA Manish Sukhani v. Shri Amit Lodha & Others – NCLT Mumbai Bench
December 13, 2023
NCLT Mumbai Bench-I held that Section 66 of the Code stipulates that the business of the Corporate Debtor is caried out with intent to defraud creditors or for any fraudulent purpose. Accordingly, there has to be an element of fraudulent intent to bring the transactions within four corners the Section 66 of the Code. Sharing of common infrastructure, for which the costs has been borne by the Corporate Debtor, certainly results into undue benefit having been given to the related parties at the cost of the Corporate Debtor, and such benefit certainly has an element of fraudulent intent. Accordingly, we find that the transactions fall under the ambit of section 66 of the Code, and an appropriate relief ought to be granted.
