Back
2025 Supreme(Online)(NCLT) 5743
NATIONAL COMPANY LAW TRIBUNAL
Prabhat Kumar, Hon’ble Member (Technical), Sushil Mahadeorao Kochey, Hon’ble Member (Judicial)
STPM LOGISTICS LLP – Appellant
Versus
MIRAGE CERAMICS PRIVATE LIMITED – Respondent
COMPANY PETITION NO. 571 (MB) OF 2019
For the Appellants/Petitioners: Mr. Nausher Kohli
For the Respondents: Tanish Amin, Ms. Sushama Satpute, Mr. Ganesh Remani
The Adjudicating Authority must distinguish between preferential and fraudulent transactions under the IBC, applying specific statutory provisions to each case determined by evidence provided.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 43, 45, 49, 50, 66, 60(5) - Applications filed to declare certain transactions as void, involving undue preference, undervalued, and fraudulent trading - Adjudicating Authority has to distinguish between types of transactions and their relevant provisions. (Paras 12, 13, 26, 28, 40)
(B) Transaction Audit - Transactions involving related parties are scrutinized under the IBC, determining proper classification as preferential and undervalued transactions based on provided evidence. (Paras 24, 27, 29, 32)
Facts of the case:
Applications filed by Resolution Professional and Liquidator to declare certain transactions void due to preferential treatment, undervalued sales, and fraudulent trading. (Paras 1, 3, 5)
Findings of Court:
Transactions involving directors or related parties subjected to scrutiny; some transactions validated while others rejected based on insufficient evidence, leading to restorations of positions prior to transaction entries. (Paras 39, 40)
Issues: Whether transactions are preferential, undervalued, or fraudulent, requiring analysis of audit reports for validity. (Paras 12, 13)
Ratio Decidendi: The distinction between preferential and fraudulent transactions is critical, emphasizing that the Adjudicating Authority must evaluate each case based on the specific statutory provisions; specific evidentiary standards apply for different transaction types under the IBC. (Paras 13, 14)
Result: Applications partly allowed with certain transactions reversed and liabilities restored accordingly. (Paras 39, 40)
ORDER
1. The Application IA 935/2021 was filed on 27.4.2021 by Mr. Bhaskar Gopal Shetty (Applicant), the Resolution Professional of Mirage Ceramics Private Limited (“Corporate Debtor”), Under Section 43 , 45, 49, 50, 66, 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC Code), seeking following reliefs:
i. that the transactions mentioned at point nos. 5(A) to (E) above, be declared as void under Section 43 , 45, 49, 50, 66, 60(5) Of the Insolvency and Bankruptcy Code; and / or
ii. an order for reversal of the transactions mentioned at point nos. 5(A) to (E)above, under Section 43 , 45, 49, 50, 66, 60(5) Of the Insolvency and Bankruptcy Code be passed; and / or.
iii. that the promoters/directors or any party/ies who are carrying on the business with an intent to defraud the creditors may be made liable and directed to make such contribution towards the assets of the Corporate Debtor as this Hon'ble Tribunal may deem fit; and / or COMPANY PETITION NO. 571 (MB) OF 2019
iv. an order restoring the position as it existed before such transaction mentioned at point nos. 5(A) to (E) above, as if such transactions had not been entered into;
v. an order directing the promoters/ directors of the Corporate Debtor to hand over the said Motor Cars as appearing in the Audited Balance Sheet as on 14- 02-2020, to the RP/ Applicant herein and/ or hand over an amount equivalent to the Rs.12,35,117/- (Rupees Twelve Lacs Thirty Five Thousand One Hundred Seventeen Only) being the written down value of the said Motor Cars as per Balance Sheet as on 14-02-2020, to the RP/ Applicant herein; and / or vi. any such order as this Hon'ble Tribunal as may deem fit.
2. Another Application IA 2103/2024 is filed on 23.04.2024 by Mr. Bhaskar Gopal Shetty (Applicant), the Liquidator, of Mirage Ceramics Private Limited (“Corporate Debtor”) under Section 43 , 45, 49, 50, 66, 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC Code), seeking following reliefs:
a) This Hon'ble Tribunal be pleased to declare the Preferential Transactions, Undervalued Transactions as well as Transactions defrauding creditors, and Fraudulent Transactions as well as Wrongful Trading Transactions as void under Section 43 , 45, 49, 66, 60(5) of the Insolvency and Bankruptcy Code;
b) This Hon'ble Tribunal be pleased to pass an order directing the Respondents for reversal of the Preferential Transactions, Undervalued Transactions as well as Transactions defrauding creditors, and Fraudulent Transactions as well as Wrongful Trading Transactions under Section 43 , 45, 49, 66, 60(5) of the Insolvency and Bankruptcy Code;
c) This Hon'ble Tribunal be pleased to direct the Respondents being Related Parties under the IBC from not carrying on the business or enter into transaction which may defraud the Creditors and further the Respondents be made liable and directed to make such contribution towards the assets of the Corporate Debtor which have been fraudulent entered into by the Respondents by defrauding the creditors;
COMPANY PETITION NO. 571 (MB) OF 2019
d) Pending hearing and final disposal of this Application, this Hon'ble Tribunal be pleased to direct the Respondents being Related Parties under the IBC from not carrying on the business or enter into transaction which may defraud the Creditors and further the Respondents be made liable and directed to make such contribution towards the assets of the Corporate Debtor which have been fraudulent entered into by the Respondents by defrauding the creditors.
e) Pending hearing and final disposal of this Application, this Hon'ble Tribunal be pleased to direct the Promoters/Respondents to provide Tax Invoices (GST Invoice) for the material sold resulting in the reduction of Inventory of the Corporate Debtor and other supporting documents as may be required under the directions of this Hon'ble Court.
f) Pending the hearing and final disposal of the present Application, the Applicant be permitted to investigate and further file a detailed Audit Report on the b
