The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Justice Mohammad Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that a complete surrender on the part of the corporate debtor to negotiate the terms of the Memorandum of Understanding, by which the property from the Respondent was to be purchased, and agreeing to a one side clause that empowers the Respondent to unilaterally terminate the agreement and forfeit the entire amount paid in pursuance of the said agreement would fall within scope of fraudulent transactions under section 66 of the Code.
Brief Facts:
This appeal has been filed by the Appellants under Section 61 of the Insolvency…