2024 (8) TMI 1703

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....ed as a fraudulent transaction. 2. Adjudicating Authority in Paragraphs 4 & 5 of the Order has extracted the Paras 9 & 10 of the Application. In the Applications, the Appellant could not file any Reply and the Adjudicating Authority proceeded to decide the Application by the Impugned Order. Only two Paragraphs of the Orders i.e., Paragraphs 12 & 13 which can be said to be consideration of the Application by the Adjudicating Authority which Paragraphs 12 & 13 are as follows: "12. We are of the view that the above mentioned observations are made by the rightly appointed Transaction Auditors and hence, have been taken on record. Further, it is relevant to mention that despite sending of multiple notices by the Applicant, the Respondents made no appearance. The Applicant has further enclosed affidavit of service, which justifies that there has been no default on the part of the Applicant and hence, the said Respondents has been proceeded Ex-parte with, by this Adjudicating Authority. In addition to that, we opine that the above mentioned Transaction Auditors are expert in the concerned field and that there has been no reply on the part of the Respondents, we see no impedime....

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....icating Authority dated 17.04.2023 and reviving the Application I.A.119/2022 for fresh consideration. 7. In view of the facts that Application is being revived, Appellant is also at opportunity to file the Affidavit in Reply to the Application within a period of three weeks from today along with the relevant materials which is required to be filed. The Adjudicating Authority after considering the Reply of the Appellant may proceed to pass fresh Order in accordance with law. 8. Application I.A.119/2022, having been filed in 2022, we request the Adjudicating Authority to expeditiously dispose of the Application. Comp. App. (AT) (Ins.) No. 196 of 2023 1. This Appeal has been filed by the Ex Director of the Corporate Debtor, challenging the Order dated 22.12.2022 passed by the Learned Adjudicating Authority (National Company Law Tribunal, New Delhi Bench Court - V) in I.A. 111/2022 in (IB)/2354/ND/2019. I.A.111/2022 was filed by the Resolution Professional (`RP') under Section 43 read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016, (for short `The Code or The IBC') before the Adjudicating Authority. Liquidator has filed the transaction on the basis of Transa....

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....en no business In the company during the year 2019-20 in terms of purchase or sales. These charges include Rs. 10 lacs paid to M/s GRPT Marketing Pyt. Lid. And Rs. 11 lacs paid to M/s. S. Chaudhary & Co. the documents related whereto could not be examined for want of access to the same. The expenditure does not appear to be genuine and seem to have been manipulated/inflated. The Resolution Professional of the case was apprised of the aforementioned observations and the documents/information/explanations/clarifications etc. required in respect thereof as aforementioned. The Resolution Professional informed us to have sought the required documents/information/explanations/ clarifications from the management of JIPL but the management of JIPL not only failed to provide the same but also showed its reluctance to offer us the opportunity to visit the office of JIPL for our verification/examination of necessary documents/information or to seek explanation/clarification on our observations within the reasonable time and opportunity offered by the Resolution Professional to the management of JIPL. This shows sheer non-cooperative attitude of the management of PL in the matter. ....

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....ting the loss during that period and possibly misappropriating the funds of the company by such actions." 5. The submission which has been pressed by the Counsel for the Appellant is that the transactions which are referred to were transactions where it is claimed that certain amount were written off as captured in Para 9 in the Table at Item Nos. 1 to 5. 6. We have considered the submissions of the Counsel for the Appellant and perused the record. 7. Section 43 of the IBC provides as follows: "43. Preferential transactions and relevant time.- (1) Where the liquidator or the resolution professional, as the case may be, is of the opinion that the corporate debtor has at a relevant time given a preference in such transactions and in such manner as laid down in sub- section (2) to any persons as referred to in sub- section (4), he shall apply to the Adjudicating Authority for avoidance of preferential transactions and for, one or more of the orders referred to in section 44. (2) A corporate debtor shall be deemed to have given a preference, if- (a) there is a transfer of property or an interest thereof of the corporate debtor for the benefi....