# In the matter of Vivek Prakash & Ors. vs. Dinesh Kumar Gupta & Ors.

> NCLAT judgment dated 2024-08-28. Citation: TCN-2024-NCLAT-00236. This case involves two appeals, Company Appeal (AT) (Insolvency) No. 196 of 2023 and Company…

- **Court:** NCLAT
- **Order date:** 28 Aug 2024
- **Citation:** TCN-2024-NCLAT-00236
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vivek-prakash-ors-vs-dinesh-kumar-gupta-ors-5f98655f

## Summary

### Background

This case involves two appeals, Company Appeal (AT) (Insolvency) No. 196 of 2023 and Company Appeal (AT) (Insolvency) No. 828 of 2023, both filed by the Ex Director of the Corporate Debtor, Vivek Prakash, challenging orders passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench). Appeal No. 828 challenges an order dated 17.04.2023 regarding fraudulent transactions under Section 66 of the IBC. Appeal No. 196 challenges an order dated 22.12.2022 regarding preferential transactions under Sections 43 & 44 of the IBC. The Liquidator initiated proceedings based on a Transaction Audit Report dated 19.08.2020.

## Facts

Vivek Prakash, the Ex Director of the Corporate Debtor, filed two appeals challenging orders passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench). The first appeal, No. 828, challenges an order dated 17.04.2023 related to fraudulent transactions under Section 66 of the IBC. The Liquidator filed I.A.119/2022 under Section 66, alleging fraudulent transactions. The Adjudicating Authority extracted paragraphs from the application but the Appellant claims they couldn't file a reply. The last balance sheet filed by the Corporate Debtor was as of 31.03.2019. The second appeal, No. 196, challenges an order dated 22.12.2022 concerning preferential transactions under Sections 43 & 44 of the IBC. The Resolution Professional filed I.A.111/2022

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority adequately considered the ingredients of Section 66 of the IBC …

**Ratio:** Section 66 of the IBC deals with fraudulent transactions. The Adjudicating Authority must

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**Reasoning:** The NCLAT found that the Adjudicating Authority did not adequately consider the

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**Interpretation:** Section 66 requires a thorough examination of the transactions and a clear

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**Application:** In this case, the NCLAT found that the Adjudicating Authority's order lacked

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Vivek Pr…
- **Respondents:** Dinesh Kuma…

## Timeline

- **2020-08-19 — Transaction Audit…**: Date of the Transaction Audit Report, which formed the basis for the Liquidator's…
- **2022-12-22 — Order Date (Appeal No.…**: Date of the order passed by the Adjudicating Authority regarding preferential…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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