#Fraud and Collusion

Recalling a CIRP initiated via fraud or collusion is within an Adjudicating Authority’s power, but continuation depends on whether it serves insolvency resolution with integrity, the Supreme Court held, requiring a hearing of the RP, CoC and stakeholders.

Bombay High Court holds that a stranger to a compromise decree may maintain a separate suit if alleging fraud, collusion, or suppression, overriding blanket bars under Rule 3-A CPC.