Section 66 of the IBC does not provide for any look back period as far as fraudulent transactions are concerned – Mr. Thomas George Vs. K. Easwara Pillai RP M/s. Mathstraman Manufacturers and Traders Pvt. Ltd. – NCLAT Chennai
In this case, contention of the Appellant that the look back period for Section 66 is to be construed as three years as the law of Limitation under the Code is three years from the date of default.
NCLAT held that Section 66 of the Code does not provide for any ‘look back period’ as far as fraudulent transactions are concerned. Unlike other types of transactions provided under the Code, there is no specified look back period for fraudulent trading under Section 66. Hence, the Resolution Professional is allowed to retrieve/repossess without any limitation of time and correct all the wrong doings for any relevant point of time. Section 66 of the Code envisages that the losses caused to the Creditors are recovered in the event of the Liquidation and that the Directors who caused such losses are made liable to make good such losses.