Under Section 43 & 44 of Insolvency &

Bankruptcy Code, 2016

Mr. Anish Niranjan Nanavaty

The Resolution Professional

…Applicant

Vs.

Reliance Communications Infrastructure

Limited & Another

…Respondents In the matter of

C.P.(IB) No. 1387/MB/2017

Ericsson India Pvt Ltd

Financial Creditor

Vs.

Reliance Communications Ltd.

Corporate Debtor

Order delivered on: 15.04.2024

Coram:

Shri Prabhat Kumar Justice V.G. Bisht (Retd.) Hon’ble Member (Technical) Hon’ble Member (Judicial)

Appearances:

CP (IB) 1387 OF 2017 For the Applicant/RP : Mr. Anoop Rawat a/w Mr.

Rishabh Jaisani and Ms. Kriti Kalyani, Advocates For the Respondent 1 : Mr. Ankit Lohia, Advocate ORDER Per: Prabhat Kumar, Member (Technical)

1. This application IA 178/2022 was filed by Mr. Anish Niranjan Nanavaty (“Applicant”) in the matter of M/s Reliance Communications Limited (Corporate Debtor) under Section 43 & 44 of The Insolvency and Bankruptcy Code, 2016 ("Code"), seeking following reliefs:

a. Order and declare that the Impugned Transaction, i.e, transaction as entered into between the Corporate Debtor and the Respondents through the Impugned Letter dated 30th September, 2017 and acts undertaken in furtherance of the same, constitutes a preferential transaction under Section 43 of the Code, b. Order and declare the aforesaid Impugned Transaction entered into between Corporate Debtor and the Respondents by way of the Impugned Letter dated 30th September, 2017 and acts undertaken in furtherance of the same as being null and void and set aside the same;

c. Any other relief, including under Section 44 of the Code, that this Hon'ble Adjudicating Authority may deem fit.

2. The present Application is being filed seeking the setting aside of the preferential transaction entered, by way of a settlement dated 24 September 2018, into between Reliance Communications Limited ("RCOM" or "Corporate Debtor") and the Respondent Nos. 1 and 2, which are Reliance Communication Infrastructure Limited ("RCIL") and One97 Communications Limited ("One97") respectively CP (IB) 1387 OF 2017 ("Impugned Transaction"). The Resolution Professional ("RP"/ "Applicant") of the Corporate Debtor, the Applicant herein, humbly submits that the amount of INR 5.63 crores which was initially receivable by Corporate Debtor from Respondent No.2 / One97, has been adjusted against dues payable to another company, i.e. Respondent No. 1/RCIL as a result of entering into the aforesaid preferential transaction prior to the commencement of the corporate insolvency resolution process ("CIRP") of the Corporate Debtor.

2.1. By an order dated 15th May 2018 ("Admission Order"), this Hon'ble Adjudicating Authority had admitted a company petition and had commenced the CIRP of the Corporate Debtor. Further, by an order dated 18th May 2018, in furtherance of the Admission Order, this Hon'ble Adjudicating Authority was pleased to appoint an interim resolution professional ("IRP") with respect to the Corporate Debtor.

2.2. The Admission Order was challenged by certain shareholders/directors of the Corporate Debtor before the National Company Law Appellate Tribunal ("NCLAT"/ "Appellate Authority"), and stayed by the NCLAT by an order dated 30 May 2018 ("Stay Order"). Thereafter, in view of the subsequent developments, the directors/shareholders withdrew the Appeal filed before the NCLAT and by an order dated 30th April 2019 ("Withdrawal Order"), the NCLAT permitted the withdrawal of the Appeal and also directed this Hon'ble Tribunal to proceed with the matter in accordance with the law. By an Order dated 7th May 2019 "CIRP Revival Order"), this Hon'ble Adjudicating Authority directed recommencement of the CIRP of the Corporate Debtor

2.3. In view of the aforementioned orders, the CIRP of the Corporate Debtor was recommenced. It is pertinent to note, by an order dated 9th May 2019, the period between 30 May 2018 and 30 April 2019 has been excluded by this Adjudicating Authority from the CP (IB) 1387 OF 2017 calculation of the CIRP. Subsequently, by an order dat