NCLAT dismissed an appeal by Golden Tobacco Ltd.'s ex-directors against an NCLT order holding them liable for fraudulent trading under IBC Section 66.
The directors were ordered to contribute ₹6.92 lakh with 12% interest for not depositing employee salary deductions meant for a credit society.
The tribunal found that deducting funds over 9 months and using them for working capital, without depositing, constituted intent to defraud creditors.
The ruling clarifies that personal gain is not necessary to establish fraud under Companies Act Section 447 for IBC proceedings.