https://www.taxscan.in/tags/national-company-law-tribunal
The National Company Law Appellate Tribunal (NCLAT), Principal Bench at New Delhi, upheld the National Company Law Tribunal (NCLT) order directing contribution to the assets of a corporate debtor after finding that a share transaction with a related party was carried out with the intent to defraud creditors.
The appeal arose from proceedings under the corporate insolvency resolution process (CIRP) of PKS Limited, where the resolution professional had moved an application alleging that a substantial investment made by the corporate debtor in a related party was subsequently divested at a grossly undervalued price, causing significant loss to the corporate debtor. The transaction…