Adjudicating authority must look-into issue of fraudulent initiation of proceedings under IBC: SC

Beacon Trusteeship Limited Vs Earthcon Infracon Private Limited & Anr. (Supreme Court) Considering the provision of Section 65 of the IBC, it is necessary for the Adjudicating Authority in case such an allegation is raised to go into the same. In case, such an objection is raised or application is filed before the Adjudicating Authority, obviously, it has to be dealt with in accordance with law. Debenture Trust Deed (for short ‘DTD’) was entered into between Respondent i.e. Earthcon Infracon Private Limited and the appellant i.e. Beacon Trusteeship Limited. The Respondent issued 3000...