Pre-CIRP asset sale alleged without consideration to defraud creditors; intent not proved, liquidator's avoidance appeal dismissed

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Avoidance of a pre-CIRP sale as a fraudulent transaction was sought on the ground that it was without consideration and intended to defraud creditors. In the absence of any pending creditor claims at the time of execution, the subsequent classification of the debtor's bank account as NPA, and the presence of other secured assets, the requisite intent to defraud was not established; the liquidator failed to discharge the heavy burden of proof. Alleged সন্দ about an old acknowledgment letter and the purchaser's non-production of decades-old payment records did not negate consideration, especially where contemporaneous corporate disclosures and financial statements corroborated the transfer, and consideration could be furnished by a third party. The appeal was dismissed. - SC....