Under Section 43 & 44 of Insolvency &

Bankruptcy Code, 2016

Mr. Anish Niranjan Nanavaty

The Resolution Professional

…Applicant

Vs.

Reliance Webstore & Another

…Respondents In the matter of

C.P.(IB) No. 1386/MB/2017

Ericsson India Pvt Ltd

Financial Creditor

Vs.

Reliance Telecom 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:

For the Applicant/RP : Mr. Anoop Rawat a/w Mr.

CP (IB) 1386 OF 2017 Rishabh Jaisani and Ms. Kriti Kalyani, Advocates For the Respondent 2 : Mr. Ankit Lohia a/w Mr. Udit Raghuwanshi , Advocates ORDER Per: V.G. Bisht, Member (Judicial)

1. This application IA 176/2022 was filed by Mr. Anish Niranjan Nanavaty (“Applicant”) in the matter of M/s Reliance Telecom 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. the arrangement set out as entered into between the Corporate Debtor and the Respondents through the Impugned Letter dated 31" January, 2018, and acts undertaken in furtherance thereof, constitute 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 31 January 2018 and acts undertaken in furtherance of the Impugned Letter, as being null and void and set aside the same;

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

2. The present Application is being filed seeking the setting aside of the preferential transaction entered, by way of letter dated 31" January, 2018 ("Impugned Letter"), into between Reliance Telecom Limited ("RTL" or "Corporate Debtor") and the Respondent Nos. 1 and 2, which are Reliance Webstore Limited ("RWSL") and Reliance Communications Limited ("RCOM") respectively ("Impugned Transaction"). The Resolution CP (IB) 1386 OF 2017 Professional ("RP"/"Applicant") of the Corporate Debtor humbly submits that the amount of INR 30 crores which was initially receivable by Corporate Debtor from Respondent No.1/RWSL, has been adjusted against dues payable to another company, ie. Respondent No.2/RCOM as a result of 2018 entering into the aforesaid preferential transaction prior to the commencement of the corporate insolvency resolution process ("CIRP) of the Corporate Debtor.

2.1. This Tribunal vide order dated 15.05.2018 initiated the CIRP against the Corporate Debtor by admitting the application the creditor under the IBC, 2016 and Mr. Pradeep Kumar Sethi was appointed as the IRP. Further, the RP issued Public Announcement inviting claims on 07/05/2019 fixing the last date of submission as 21/05/2019. In the meantime, the respondent- Shri Anish Nanavaty has also been substituted as the Resolution Professional.

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 30th 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 Adjudicating Authority directed recommencement of the CIRP of the Corporate Debtor

2.3. In view of the aforementioned the CIRP of the Corporate Debtor was recommenced. It is pertinent to note, by an order dated 9 May 2019, the period between 30th May 2018 and 30 April 2019 has been excluded by this Hon'ble Adjudicating Authority from the calculation of the CIRP. Subsequently, by an order dated 21 June 2019 (published on 28th J