Avoidance of preferential and undervalued transactions allows creditors or members to seek orders when reporting is omitted. A creditor, member or partner of the corporate debtor may apply to the Adjudicating Authority when a preferential, undervalued, extortionate credit, or fraudulent or wrongful trading transaction has occurred and the liquidator or resolution professional has not reported it. If satisfied, the Authority must pass avoidance orders under the relevant provisions as if the application had been filed by the liquidator or resolution professional. Where the failure to report occurred despite sufficient information or opportunity, the Board must be directed to initiate disciplinary proceedings.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Avoidance of preferential and undervalued transactions allows creditors or members to seek orders when reporting is omitted.
A creditor, member or partner of the corporate debtor may apply to the Adjudicating Authority when a preferential, undervalued, extortionate credit, or fraudulent or wrongful trading transaction has occurred and the liquidator or resolution professional has not reported it. If satisfied, the Authority must pass avoidance orders under the relevant provisions as if the application had been filed by the liquidator or resolution professional. Where the failure to report occurred despite sufficient information or opportunity, the Board must be directed to initiate disciplinary proceedings.
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