TaxTMI 
TaxTMI 
TaxTMI 
2021 (4) TMI 10
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....idha Patnaik, Mr. Aditi Mishra, Advs. for R3 ORDER This is an order being passed in IA.2277/ND/2020. The application has been filed by the Resolution Professional under Section 49 and Section 66 of the Code, seeking following prayers: a. Declare the transaction of Plant and Machinery of the Corporate Debtor to Respondent No.3 as fraudulent; b. Issue necessary directions for cancellation of the transaction of sale of Plant and Machinery of Corporate Debtor to Respondent No.3; c. Pass any other Order as the Hon`ble Adjudicating Authority deems fit. 2. The brief facts of the case are that an application by M/S BHUPINDRA AGRO PVT. LTD. (herein the Operational Creditor) under Section 9 of IBC, 2016 was filed on 25.01.2019 against t....
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....TRADING CO. Para 2.2.1 The corporate debtor has transferred almost all the fixed assets Just before the initiation of CIRP by the way of books entries, no physical transfer of such assets has been taken place. Further the said transfer/transaction has been. done without the prior approval of the financial creditor i.e. Punjab National bank. Para 2.2.2 It was observed that the CD has received an unsecured loan of Rs. 4.80 core before 01.04.2017 and made payment of Rs. 4.09 core against the said unsecured loan during the period under audit. Para 2.2.3 Further, during the FY 2018-19 the CD has sold/transferred Its plant and machinery to Radico Trading Co having the book value of Rs. 1.56 core for Rs. 20.80 lakh by making loss on sale of ....
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....audit report is that the suspended directors have transferred plant and machinery of the Corporate Debtor on 03.05.2019 for Rs. 7,55,200/- and on 08.05.2019 for Rs. 14,40,600/- to Respondent No. 3 by way of book entries. The gross and net value of Plant and Machinery in the books of account as on 31.03.2019 was Rs. 4,23,92,728/- and Rs. 1,56,49,484. The said Plant and Machinery is under physical possession of the Corporate Debtor only and the Resolution Professional has the safe custody and control over it. It is stated that entries in Books of accounts of Corporate Debtor have been passed in lieu of the transfer of Plant and Machinery, with the malafide intention to defraud the Creditors of the Corporate Debtor and also to mislead the Pros....
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....ring 08.11.2016 to 02.03.2017 in the account of the Corporate Debtor, which was accounted in the books of the Corporate Debtor Company through book entry. The PNB bank gave the NOC to the Tehsildar Panipat for the said sale. The Corporate Guarantee of the Respondent No.3 has ceased after paying the consideration by obtaining the NOC`s and selling the land of Respondent No. 3. It is further submitted that there were continuous transaction between the Corporate Debtor Company and Respondent No. 3 and all the transactions were carried out in the ordinary course of business. 8. The Plant and Machinery is sold at the best market price after taking various quotations from independent buyers and was sold during the ordinary course of business for....
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....such corporate debtor- (a) for keeping assets of the corporate debtor beyond the reach of any person who is entitled to make a claim against the corporate debtor; or (b) in order to adversely affect the interests of such a person in relation to the claim, the Adjudicating Authority shall make an order- (i) restoring the position as it existed before such transaction as if the transaction had not been entered into; and (ii) protecting the interests of persons who are victims of such transactions: Provided that an order under this section- (a) shall not affect any interest in property which was acquired from a person other than the corporate debtor and was acquired in good faith, for value and without notice of the relevant circum....
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....ed by the Respondent No. 3 vide bill no. 407 dated 03.05.2019 for an amount of Rs. 7,55,200/- and bill no. 408 dated 08.05.019 for an amount of Rs. 14,40,600/- (Inclusive of GST). The Final Audit Report states that during the period under audit there have been no transaction as laid down in Section 49 and with respect to Section 66 of the code, the observations made only rely on the fact that the Corporate Debtor has trans-ferred its fixed assets just before the initiation of CIRP by the way of books entries. However, on scrutinizing the details of all the documents placed on record, we are of the view that the Directors of the Corporate Debtor were well aware of the fact that an application has been filed on 25.01. 2019 and the same is pen....