NCLAT dismissed appeals by Intarvo Technologies and Sonoma Management, upholding NCLT's finding of fraudulent CIRP initiation under Section 10 IBC.
Tribunal confirmed ₹5 lakh penalty on Intarvo for concealing a ₹47 lakh decree debt while filing for insolvency in December 2022.
NCLAT ruled the CIRP was maliciously initiated with invalid board authorization and unexplained ₹7.05 crore related-party write-offs.
Successful resolution plan by Sonoma was voided as the entire CIRP was vitiated by fraud from inception.