# In the matter of Tirumala Balaji Alloys Pvt. Ltd. Vs. Sumit Binani CA (AT) No. 600-2018

> NCLAT judgment dated 2018-10-03. Citation: TCN-2018-NCLAT-00099. The case involves an appeal against an application under Section 43 of the Insolvency and…

- **Court:** NCLAT
- **Order date:** 3 Oct 2018
- **Citation:** TCN-2018-NCLAT-00099
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tirumala-balaji-alloys-pvt-ltd-vs-sumit-binani-ca-9894f390

## Summary

### Background

The case involves an appeal against an application under Section 43 of the Insolvency and Bankruptcy Code, 2016. The appellant's counsel argues that a loan transaction of Rs. 5 Crores occurred in October 2015, and in the absence of immovable assets transactions, the application under Section 43 is not maintainable. The counsel also argues that repayment of the loan amount should not be considered when calculating the limitation period for filing the application.

## Facts

Tirumala Balaji Alloys Pvt. Ltd. filed an appeal against an application under Section 43 of the Insolvency and Bankruptcy Code, 2016. The appellant's counsel argued that a loan transaction of Rs. 5 Crores occurred in October 2015. The appellant contends that because there were no transactions involving immovable assets, the application under Section 43 is not maintainable. The appellant also argues that the repayment of the loan amount should not be considered when calculating the limitation period for filing the application. The relevance of these facts lies in determining whether the application under Section 43 is valid and whether the limitation period was correctly calculated.

## Issues and analysis

### Issue 1: Whether the application under Section 43 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** The ratio is based on the interpretation of Section 43 of the Insolvency and Bankruptcy

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**Reasoning:** The court will need to determine if the absence of immovable asset transactions affects

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**Interpretation:** The interpretation of Section 43 will determine the scope of its application,

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**Application:** The court will apply the interpretation of Section 43 to the specific facts of

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Tirumala Balaji…
- **Respondents:** Sumit B…
- **Advocates:** Abhijit…; Sreenita…; +1 more

## Timeline

- **2015-10-01 — Loan Trans…**: Loan transaction of Rs. 5 Crores…
- **2016-01-01 — Application under…**: Application under Section 43 of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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