# In the matter of Ashique Ponnamparambath vs. Vibin Vincent

> NCLAT judgment dated 2023-09-21. Citation: TCN-2023-NCLAT-00182. This case involves an appeal against an order dated 27.04.2023 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 21 Sept 2023
- **Citation:** TCN-2023-NCLAT-00182
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ashique-ponnamparambath-vs-vibin-vincent-92db71cd

## Summary

### Background

This case involves an appeal against an order dated 27.04.2023 passed by the Adjudicating Authority (NCLT, Kochi Bench, Kerala) in IA (IBC) 182/KOB/2022 in IBA No. 37/KOB/2020. The Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor based on a petition filed under section 7 of the IBC. A forensic audit was conducted due to anomalies in the corporate debtor's books, revealing transactions by the Appellant, Ashique Ponnamparambath, that potentially infringed section 43 of the IBC. The liquidator, Vibin Vincent, filed IA (IBC) 182/KOB/2022 seeking orders regarding these preferential transactions.

## Facts

Ashique Ponnamparambath, the Appellant, is an ex-Director of the corporate debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor. A forensic audit revealed anomalies in the corporate debtor's books of accounts. The Appellant stated that Rs.36,03,970.50 was due to him from the corporate debtor as of 6.10.2019. He withdrew Rs.8,79,357 for various expenses. Rs.28,55,932.00 was transferred by the appellant from the account of the corporate debtor, which was utilized for payment of installments with respect to a loan availed from IDBI Bank. The liquidator, Vibin Vincent, filed IA (IBC) 182/KOB/2022 alleging preferential transactions under section 43 of the IBC. The Adjudicating Authority ruled the transactions were

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## Issues and analysis

### Issue 1: Whether the transactions made by the Appellant constitute preferential transactions under Section …

**Ratio:** Section 43 of the IBC defines preferential transactions as those that benefit a creditor,

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**Reasoning:** The appellate tribunal reasoned that the Appellant failed to provide a valid reason for

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**Interpretation:** Section 43 of the IBC aims to prevent corporate debtors from favoring certain

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**Application:** The tribunal applied the provisions of Section 43 to the facts of the case,

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## Parties

- **Judges:** M. Venu…; Alok Sriv…
- **Appellants:** Ashique Ponnampara…
- **Respondents:** Vibin Vi…

## Timeline

- **2020-01-01 — IBA No. 37/K…**: Mention of IBA No.…
- **2021-10-06 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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