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Informative

Adjudicating Authority Cannot Declare A Sale Transaction Void U/S 66(1) Of IBC: NCLAT New Delhi

Update / Judgement Date

27 Apr 2025

Source

Live Law

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

NCLAT, New Delhi, held that the Adjudicating Authority (NCLT) cannot declare a sale transaction void under Section 661 of the IBC. Section 661 likely pertains to fraudulent or wrongful trading by the corporate debtor. The appellate tribunal's ruling suggests that the power to declare a sale transaction void under this section lies with the NCLT only in specific circumstances related to the conduct of the corporate debtor and not as a general power over all transactions.