Absence of Entries Not Proof of Fraud; NCLT Upholds Strict Proof Standard Under Section 66

Kizhakkekkara Kuriakose Jose Vs A.D. Krishnan (NCLT Kochi) The application before the National Company Law Tribunal (NCLT), Kochi Bench, was filed by the Liquidator of a corporate debtor under Section 66(1) of the Insolvency and Bankruptcy Code, 2016, seeking recovery of ₹30,00,000 with interest from the suspended Managing Director on allegations of fraudulent trading and diversion of funds. The Liquidator contended that the corporate debtor had received ₹50,00,000 under an agreement for sale of a mortgaged property, out of which only ₹20,00,000 was reflected in the books of account, whi...