NCLAT Upholds Order Directing Suspended Directors To Repay ₹32 Lakh Which Was Withdrawn During CIRP, Imposes ₹5 Lakh Cost

NCLAT upheld the order of the Adjudicating Authority (NCLT) directing suspended directors to repay ₹32 lakh withdrawn during the CIRP and imposed ₹5 lakh costs. The appellate tribunal affirmed the NCLT's finding that the withdrawals by the suspended directors were unauthorized and detrimental to the corporate debtor's financial position during the insolvency resolution process. The imposition of costs further underscores the seriousness of such actions and the accountability of those who mismanage funds during CIRP.