NCLAT Upholds ₹3653 Crore Liability Against Former Directors

This article covers a landmark ruling where the NCLAT upheld a ₹3,653 crore liability against former directors for fraudulent trading. It explains the concept of fraudulent trading under the IBC and how personal liability can be imposed on directors who are found to have conducted business with intent to defraud creditors. The report outlines the factual background of the case, evidence considered, and the legal principles applied by the tribunal. It also discusses the broader impact of the judgment on corporate governance, director accountability, and the deterrent effect against misuse of corporate structures.