NCLAT Upholds NCLT's Order Directing Corporate Debtor To Restore ₹3.18 Crore Generated From Fraudulent Transactions

The NCLAT (National Company Law Appellate Tribunal) has upheld the NCLT's (National Company Law Tribunal) order directing a corporate debtor to restore ₹3.18 crore under Section 66 of IBC, which was generated from fraudulent transactions. This significant ruling targets preferential or undervalued transactions intended to defraud creditors. By affirming the NCLT's decision, the NCLAT ensures that funds siphoned off through fraudulent means are brought back into the corporate debtor's estate, maximizing assets available for distribution to legitimate creditors during insolvency proceedings.