Fraud Or Malicious Intent U/S 65 Of IBC Is Proven If Terms Of Loan Extended By Financial Creditor Are Designed To Cause Default: NCLT

The NCLT (National Company Law Tribunal) held that fraud or malicious intent under Section 65 of the IBC (Insolvency and Bankruptcy Code) is proven if the terms of a loan extended by a financial creditor are designed to cause default. Section 65 penalizes fraudulent or malicious initiation of insolvency proceedings. The tribunal's interpretation suggests that lending practices intended to trigger default could be considered malicious and attract penalties under the IBC.