The Dichotomy Surrounding Third Parties Being Made Amenable To Fraudulent Proceedings Under IBC

INTRODUCTION

The Supreme Court affirmed that the remedy against third party is not available under Section 66 of IBC, and in such circumstances, it is for the Resolution Professional or the successful resolution applicant to take such civil remedies against third party for recovery of dues payable to corporate debtor, and the civil remedies which may be available in law are independent of the said Section. Diverse views on third party claims have been presented. Hence, it is pertinent to understand the contradictions present in third party claims. Section 66, IBC pertains to passing of directions seeking contribution towards the assets of the corporate debtor either by persons who were knowingly party to carrying on of the business of the corporate debtor or by director / partner of the corporate debtor.