# In the matter of Vinay Jain vs. AVJ Developers (India) Pvt. Ltd.

> NCLAT judgment dated 2023-08-23. Citation: TCN-2023-NCLAT-00260. This appeal was filed by a Successful Resolution Applicant/Suspended Director of the…

- **Court:** NCLAT
- **Order date:** 23 Aug 2023
- **Citation:** TCN-2023-NCLAT-00260
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vinay-jain-vs-avj-developers-bcb3338d

## Summary

### Background

This appeal was filed by a Successful Resolution Applicant/Suspended Director of the Corporate Debtor challenging an order dated April 12, 2023, passed by the Adjudicating Authority. The core dispute revolves around the priority of hearing between an application for approval of a resolution plan and applications concerning preferential, undervalued, and fraudulent transactions (PUFE applications) by the appellant.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against AVJ Developers (India) Pvt. Ltd. on September 21, 2019, following an application by a financial creditor. The corporate debtor was involved in a real estate project called AVJ Heights, where the construction of one tower remained incomplete. This led to several home-buyers filing First Information Reports (FIRs) against the appellant, Vinay Jain, alleging various offenses in Delhi and Uttar Pradesh. The appellant was subsequently arrested on December 24, 2019. The appellant's bail application was rejected by the Allahabad High Court, leading him to file SLP (Crl.) No. 175/2021 before the Supreme Court. On February 8, 2021, the Supreme Court, after reviewing an affidavit from the appellant

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in directing the consideration of PUFE Transaction …

**Ratio:** The Adjudicating Authority committed an error in directing the consideration of PUFE

…

**Reasoning:** The Adjudicating Authority's reasoning for prioritizing PUFE applications was that if

…

**Interpretation:** The NCLAT interpreted **Section 26** of the IBC to mean that the filing of an

…

**Application:** The Adjudicating Authority should not have postponed the hearing of the Plan

…

## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Vinay…; Successful…
- **Respondents:** AVJ Developers…; AVJ Developers…; +2 more
- **Advocates:** Ambuj T…; Amit C…; +10 more

## Timeline

- **September 21, 2019 — CIRP Init…**: The Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP)…
- **December 24, 2019 — Appellant A…**: The Appellant, Vinay Jain, was arrested due…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/vinay-jain-vs-avj-developers-bcb3338d