However, Judge Rote noted that DHFL had undergone corporate insolvency resolution process (CIRP) on a petition filed by the Reserve Bank of India before the NCLT in Mumbai.
The Court said DHFL satisfied the statutory conditions under Section 32A(1) – the resolution plan was approved under Section 31 IBC, it resulted in change in management and control and the change in management was in favour of persons who were not related to the corporate debtor.
“The extinguishment of the criminal liability of the corporate debtor is apparently important to the new management to make a clean break with the past and start on a clean slate,” the Court observed.
It, however, clarified, that erstwhile officers/directors and others allegedly involved in…