Each and every commercial transaction resulting into loss cannot be labelled as fraudulent

Nalinesh Kumar Paurush Vs Arvind Mittal (NCLAT Delhi)

NCLAT Delhi held that each and every commercial transaction which has resulted in loss may not be labelled as fraudulent or to have been done to deceive creditors. Accordingly, since ingredients of section 66(2) of IBC is lacking, the transaction cannot be labelled as fraudulent.

Facts- The instant appeal has been preferred by the members of the Suspended Board of Directors of the CD against the order dated 09.05.2023 passed by the Hon’ble National Company Law Tribunal, Delhi Bench in I.A. No. 2536/202

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