https://www.taxtmi.com/caselaws?id=786244 Payments totalling Rs. 19,66,698.77 made to a director-related party within the two-year pre-insolvency period were held to be preferential because they reduced the corporate debtor's liability to a related party; the source of funds did not remove the transaction from Section 43(4) scope. The Adjudicating Authority correctly applied an effect-based test; Regulation 35A timelines are directory and did not bar the proceeding. The liquidator's investigative powers over preferential transactions were available, and procedural objections including alleged denial of hearing failed. Appeals dismissed. en-us Fri, 06 Feb 2026 00:00:00 +0530 Tue, 10 Feb 2026 07:46:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786244 Payments totalling Rs. 19,66,698.77 made to a director-related party within the two-year pre-insolvency period were held to be preferential because they reduced the corporate debtor's liability to a related party; the source of funds did not remove the transaction from Section 43(4) scope. The Adjudicating Authority correctly applied an effect-based test; Regulation 35A timelines are directory and did not bar the proceeding. The liquidator's investigative powers over preferential transactions were available, and procedural objections including alleged denial of hearing failed. Appeals dismissed. Case-Laws IBC Fri, 06 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786244