Justice N Seshasayee and Technical Member Arun Baroka observed that the directors issued the cheques knowing that insolvency admission was imminent and permitted their encashment using fresh credits that came after CIRP began.

The National Company Law Appellate Tribunal at Delhi on Thursday held that the suspended directors of Satra Properties (India) Ltd violated the Insolvency and Bankruptcy Code by allowing two cheques worth Rs 91 lakh to be cleared after the commencement of moratorium, and upheld the National Company Law Tribunal’s order directing them to jointly and severally refund the amount with interest under Section 66(2).

A Bench of Judicial Member Justice N Seshasayee and Technical Member Arun Baroka observed that the directors issued the cheques knowing that insolvency admission was imminent and permitted their encashment using fresh credits that came after CIRP began.