In a recent ruling, the National Company Law Appellate Tribunal (NCLAT) upheld findings that the adjustment of a ₹74.49 lakh security deposit under a Master Lease Agreement (MLA) was a fraudulent transaction; the Tribunal declined to order recovery under Section 66 of the Insolvency and Bankruptcy Code (IBC).
The appeals arose from an order dated 04 June 2024 of the NCLT Mumbai Bench, which had rejected the Resolution Professional’s (RP) application under Sections 43, 66, 67 and 70 of the IBC but directed the RP to ascertain the amount paid under the MLA and take steps to recover it from respondent Orix Leasing and the suspended directors of JSK Marketing Ltd.
Tax…