Avoidance applications under the IBC can continue beyond the conclusion of corporate insolvency resolution process (CIRP), as they primarily benefit creditors and the resolution professional retains the authority to pursue them.

1. The present Letters Patent Appeals, being LPA No. 37 & 43 of 2021 have been filed by Tata Steel BSL Ltd. (hereafter, "TSBL") and the Union of India (hereafter, "UoI") (collectively, "Appellants") respectively, impugning the Judgment and Order dated 26.11.2022 ("Impugned Judgment") rendered in W.P.(C) No. 8705 of 2019 titled Venus Recruiters Pvt. Ltd. v. Union of India and Others, wherein the Ld. Single Judge inter - alia held that an application filed under S.43 of the Insolvency and Bankruptcy Code, 2016 ("IBC") for avoidance of preferential transactions cannot survive beyond the conclusion of corporate insolvency resolution process (hereafter, "CIRP"). Accordingly, the Appellants have sought before this Court that the Impugned Judgment be set aside.

2. The facts of the case leading up to the filing of the present LPAs are set out hereinbelow:
a. Upon default in repayment of its credit facilities, State Bank of India ("SBI") filed a petition, being C.P. No. (IB) - 201(PB) / 2017 under S.7 of the IBC before the NCLT seeking initiation of CIRP of M/s Bhushan Steel Limited.
b. On 26.07.2017, the National Company Law Tribunal, New Delhi (hereafter, "NCLT") passed an order admitting Bhushan Steel Limited to CIRP. Mr. Vijay Kumar Iyer was appointed as the Interim Resolution Professional. Thereafter, pursuant to the procedure laid down in the IBC, a public announcement was made inviting submission of claims by prospective resolution applicants and the Committee of Creditors was constituted.
c. On 24.08.2017, the CoC convened for the first time wherein it inter alia confirmed the appointment of Mr. Vijay Kumar Iyer as the Resolution Professional of Bhushan Steel Limited.
d. On 20.03.2018, the CoC approved the resolution plan proposed by Tata Steel Ltd.
e. On 28.03.2018, the RP filed the resolution plan proposed by Tata Steel before the NCLT for its approval in terms of S.31 of the IBC.
f. On 03.04.2018, after filing of the resolution plan but before its approval, the Forensic Auditor of Bhushan Steel Ltd., Deloitte, submitted a Forensic Audit Report of the Corporate Debtor to the RP. Material on record discloses that several suspect transactions were entered into by the Corporate Debtor, namely, (i) Potential excess payment of lease rent to Vistrat Real Estate Pvt. Ltd.; (ii) Preferential credit to various international customer sand long outstanding receivables to entities such as Shree Steel Djibouti FZCO and Shree Global Steel FZE; (iii) Excess payments to Manpower companies / contractors; (iv) Uncontracted payment of interest on advance to Peak Minerals and Mining Private Ltd. for cancelled sale - and - lease back transactions. The transactions included a transaction entered into by the writ petitioner / Venus Recruiters Pvt. Ltd., the Respondent No.1 herein. On 03.10.2009, M/s Bhushan Steel Limited (now Tata Steel BSL Ltd.) entered into an agreement for supply of manpow