Adjudicating Authority Can Decide Allegations Of Fraud U/S 65 Of IBC While Resolution Plan Is Being Considered: NCLAT

The NCLAT has ruled that the "mere fact a resolution plan is under consideration does not strip the adjudicating authority of its power to decide allegations of fraud under Section 65 of the IBC." This decision is a crucial reminder to all that they must be diligent in their dealings. The move is a significant step towards a more transparent and less intrusive business environment, is aimed at promoting business growth while being sensitive to the practical difficulties faced by businesses. The ruling, a significant victory for the government, clarifies that a company can be held responsible for the misdeeds of another person.