2025 (6) TMI 199

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.... Baroka ] Member ( Technical ) For the Appellants : Mr. Aman Kacheria, Advocate ORDER ( Hybrid Mode ) All these appeals have been filed against the same order dated 22.05.2024 by which order IA No.2020 of 2020 filed by the Resolution Professional under Section 43 and 44 of the I&B Code has been allowed. Appellants aggrieved by the said order has come up in this appeal. 2. Learned counsel for the Appellant made two submissions. Firstly, he submits that order was passed ex-parte to the Appellant. Secondly, he submits that the payments which were treated to be preferential transactions were being made to the related parties for last 6-7 years and the said payments were made in the ordinary course of business, hence, they were no....

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....ransaction have not caused any prejudice to the lender of the Corporate Debtor and were done in the normal course of business of the Corporate Debtor and therefore will not be covered under Section 43 of the Code. It is further submitted that during the period from 1" April, 2014, the Corporate Debtor was under financial crunch and the cycle of recovery from trade receivables was completely disturbed. It is during this time, that the Respondents gave unsecured loans to meet the financial crunch of the Corporate Debtor and the Corporate Debtor returned the said amounts after receiving funds from the debtors, hence the transactions are not covered under section 43 of the Code." 6. Now coming to the submission of the Appellant that the paym....

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.... debts, particularly when the Corporate Debtor, a related party, is under financial stress. Hence, we do not find the explanation of the Respondent acceptable in the present case. However, we are of considered view that the net amounts received during the look back period shall only be said to be resulting into preference. Further, in relation to Karan J Kikavat Respondent in IA 1402/2020, the Applicant has explained that the amount withdrawn by this person was adjusted against the various Earnest Money Deposit (EMD) and tender fees paid by him on behalf of Corporate Debtor and all the EMD's are still outstanding in the books of accounts of Corporate Debtor, hence, this appropriation was in nature of reimbursements, and do not result in....