# Atul Babulal Prajapati vs. Suhas Dinkar Bhattbhatt

> NCLAT judgment dated 2026-03-25. Citation: TCN-2026-NCLAT-00040. This is an appeal filed by Shri Atul Babulal Prajapati and Shri Pinal Prajapati against the…

- **Court:** NCLAT
- **Order date:** 25 Mar 2026
- **Citation:** TCN-2026-NCLAT-00040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/atul-babulal-prajapati-vs-suhas-dinkar-bhattbhatt-udns0pcq

## Summary

### Background

This is an appeal filed by Shri Atul Babulal Prajapati and Shri Pinal Prajapati against the impugned order dated 01.10.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench) in IA No. 556(AHM) 2021 in CP (IB) No. 601 of 2019. The Adjudicating Authority directed the Appellants along with Respondent No. 3 to pay a sum of Rs. 2,00,50,000/- while declaring the transaction as preferential.

## Facts

The Appellants, Atul Babulal Prajapati and Pinal Prajapati, assailed the impugned order dated 01.10.2024 in which the Adjudicating Authority has directed the Appellants alongwith Respondent No. 3 i.e. Zen Agrifoods LLP to pay a sum of Rs.2,00,50,000/- while declaring the transaction as preferential transaction.

CIRP against the Corporate Debtor M/s WSH Pvt. Ltd. was initiated on 01.02.2021 under the provisions of the Code.

The Corporate Debtor was ordered to be liquidated vide order dated 14.12.2021 of the Adjudicating Authority.

The Resolution Professional filed an I.A. No. 556/2021 seeking avoidance of various transactions.

The Corporate Debtor had taken loan from Financial Institutions and Private Parties.

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## Issues and analysis

### Issue 1: Whether the transaction falls within the definition of a related party under Section 5(24) of the …

**Ratio:** Section 5(24) of the IBC

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**Reasoning:** The Tribunal found that Appellant No. 1, Atul Babulal Prajapati, was the Director and KMP

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**Interpretation:** The term 'related party' is interpreted broadly to include individuals and

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**Application:** The transaction falls squarely within the ambit of 'related party' under

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## Parties

- **Judges:** N. Sesha…; Arun Ba…; +1 more
- **Appellants:** Atul Babulal…; Pinal Pra…
- **Respondents:** WSH Priva…; Suhas Dinkar…; +3 more
- **Other parties:** RL3M9ZXOBmgojsXrsj…
- **Advocates:** Honey S…; Mayur Jug…; +3 more

## Timeline

- **01.10.2024 — Impugned…**: The Adjudicating Authority directed the Appellants along with Respondent No. 3 i.e. Zen…
- **01.02.2021 — CIRP Commen…**: Corporate Insolvency Resolution Process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(24) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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