Look-Back Period Can't Be Extended Beyond 2-Yr Limit U/S 43(4) Of IBC For Related-Party Transactions: NCLAT

The National Company Law Appellate Tribunal (NCLAT) ruled that the look-back period for related party transactions under Section 43(4) of the Insolvency and Bankruptcy Code (IBC) cannot be extended beyond the two-year limit. The case involved a challenge to the inclusion of transactions beyond the two-year period in the insolvency resolution process. The NCLAT held that the statutory limit must be strictly adhered to and that extending the look-back period would violate the provisions of the IBC. This decision reinforces the importance of adhering to statutory timelines in insolvency proceedings and provides clarity on the interpretation of the look-back period for related party transactions.