# In the matter of Vistra ITCL (India) Limited & Ors. vs. Satra Properties (India) Ltd. & Ors.

> NCLAT judgment dated 2025-07-03. Citation: TCN-2025-NCLAT-00331. This appeal was filed by the Financial Creditors of the Corporate Debtor, challenging the…

- **Court:** NCLAT
- **Order date:** 3 Jul 2025
- **Citation:** TCN-2025-NCLAT-00331
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vistra-itcl-india-limited-ors-vs-satra-properties-a2ef810e

## Summary

### Background

This appeal was filed by the Financial Creditors of the Corporate Debtor, challenging the order passed by the National Company Law Tribunal, Mumbai Bench-I, which disallowed the application of the Resolution Professional under Section 66 of the Insolvency and Bankruptcy Code, 2016, for refund of amount in respect of transactions entered into between the suspended management and Respondent No. 7 & 8.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Satra Properties (India) Ltd. on 03.08.2020.

A Forensic Audit Report dated 15.11.2021 by M/s BDO India LLP identified suspicious and fraudulent transactions involving the suspended management and third parties, including Respondents No. 7 and 8.

An advance of Rs. 29.35 Crore was paid by the Corporate Debtor to Respondent No. 7 between 10.08.2015 and 31.03.2016, purportedly for a property purchase, but was entirely written off on 31.03.2020.

The alleged Memorandum of Understanding ('MoU') dated 18.08.2015 is unenforceable and suspect, as it is printed on a Rs. 100 stamp paper, neither registered nor notarized, despite involving a property transaction valued at Rs. 75 Crore.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in disallowing the application of the Resolution …

**Ratio:** Section 66 of the Code allows for the recovery of fraudulent or wrongful trading

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**Reasoning:** The Adjudicating Authority's reliance on the MoU and Deed of Cancellation to validate the

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**Interpretation:** The Adjudicating Authority failed to appreciate the fraudulent nature of the

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**Application:** The Appellate Tribunal set aside the Impugned Order to the extent of

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## Parties

- **Judges:** Naresh Sa…
- **Appellants:** Vistra ITCL…; Pratiti Trading…; +1 more
- **Respondents:** Satra Properties…; Praful…; +6 more
- **Other parties:** Vaishali Arun…
- **Advocates:** Vaibhav G…; Devashish C…; +11 more

## Timeline

- **03.08.2020 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Satra Properties…
- **15.11.2021 — Forensic Audi…**: Forensic Audit Report by M/s BDO India LLP identified suspicious and fraudulent…

## 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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