https://www.taxtmi.com/caselaws?id=432034 A share pledge created to secure an antecedent liability may be treated as a preferential transaction where it falls outside the ordinary course of the corporate debtor's business or financial affairs and satisfies the statutory ingredients of preference. The analysis emphasises that asserted intent is not decisive if the objective requirements under the Insolvency and Bankruptcy Code are met. The later pledge instrument was treated as the operative transaction, and an earlier pledge was not accepted on the facts as a defence to avoidance. On that basis, the challenge to recall dismissal failed and the avoidance order with consequential directions was upheld. en-us Fri, 23 Dec 2022 00:00:00 +0530 Tue, 27 Dec 2022 07:01:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=432034 A share pledge created to secure an antecedent liability may be treated as a preferential transaction where it falls outside the ordinary course of the corporate debtor's business or financial affairs and satisfies the statutory ingredients of preference. The analysis emphasises that asserted intent is not decisive if the objective requirements under the Insolvency and Bankruptcy Code are met. The later pledge instrument was treated as the operative transaction, and an earlier pledge was not accepted on the facts as a defence to avoidance. On that basis, the challenge to recall dismissal failed and the avoidance order with consequential directions was upheld. Case-Laws Insolvency and Bankruptcy Fri, 23 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=432034