Case Law Analysis
|National Company Law Appellate Tribunal
Section 66 IBC | Directors Liable for Fraudulent Trading Even Without Personal Gain If Salary Deductions Not Deposited : NCLAT
NCLAT rules that directors can be held liable under Section 66 of the IBC for fraudulent trading if they fail to deposit salary deductions meant for employee welfare, even without personal benefit. The ruling underscores directors' fiduciary duty to creditors during insolvency, expanding liability beyond traditional fraudulent intent.