The NCLAT held that the insolvency framework empowers a...

The NCLAT held that the insolvency framework empowers a resolution professional to appoint professionals when needed for the CIRP, and no CoC approval is required for appointing a transaction auditor or for filing an avoidance application; those objections were rejected. It also held that preferential transaction proceedings are summary in nature and do not require joinder of transferee entities where the corporate debtor's records suffice; the non-joinder plea therefore failed. On Section 43, the Tribunal found a preferential transfer only where the recipient was a creditor and the payment was within the related-party look-back period without material showing ordinary-course supply. The transfer to K. Sera Sera Digital Cinema Ltd. was upheld as preferential, while the transfer to K. Sera Sera Miniplex Ltd. was set aside.

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