Under Section 69 of IBC punishment for transaction defrauding creditors can be awarded only on the officer of the Corporate Debtor or Corporate Debtor – Mr. Rohit Jasoria, Prop. RJ Brothers & Partner RJ Logistics Service LLP Vs. Aargus Global Logistics Pvt. Ltd. Through its Authorized Representative & Ors. – NCLAT New Delhi
NCLAT while dismissing a Company Appeal reported at (2022) ibclaw.in 333 NCLAT, filed by the Ex-Promoter and Ex-Directors of the Corporate Debtor has already returned finding that amounts written off as back dates during the Financial Year comes within the fraudulent transactions under Section 66. The amounts with regard to the Appellant were also written off by the Director. Learned Counsel for the Appellant lastly contended that the direction issued in paragraph 29 of the judgment to institute a prosecution under Section 69 against the Appellant also along with the Directors of the Corporate Debtor were uncalled for. He submits that under Section 69 punishment for transaction defrauding creditors can be awarded only on the officer of the Corporate Debtor or Corporate Debtor. NCLAT held that direction in paragraph 29 insofar as Respondent Nos. 9 and 10 (Appellants before us) for prosecution under Section 69 is deserves to be set aside and is hereby set aside.
