# In the matter of Antony Projects Pvt. Ltd. IA(IBC)-1086(CHE)-2021 in CP(IB)-610-IB-2017

> NCLT judgment dated 1 Feb 2023. Citation: TCN-2023-NCLT-04836. The applicant, M. Arumugam, filed an application under Section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 1 Feb 2023
- **Citation:** TCN-2023-NCLT-04836
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/antony-projects-pvt-ltd-iaibc-1086che-2021-in-cpib-610-ib-2017-b33347c7

## Summary

### Background

The applicant, M. Arumugam, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016. The application sought to set aside an order dated May 11, 2021, passed by the liquidator, Mr. Ramji, which rejected the applicant's claim. The applicant also requested a direction to the liquidator to accept his claim. The corporate debtor, Antony Projects Pvt. Ltd., had availed a loan of Rs. 4,85,00,000/- from the applicant in various periods during 2011 and provided security for Rs. 1 crore by executing a Memorandum of Deposit of Title Deed (MOTD) dated December 12, 2011.

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## Facts

M. Arumugam, the applicant, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking to set aside an order dated May 11, 2021. This order, passed by Mr. Ramji, the liquidator of Antony Projects Pvt. Ltd., rejected the applicant's claim. The applicant also sought a direction for the liquidator to accept his claim. The corporate debtor had allegedly availed Rs. 4,85,00,000/- from the applicant in various periods during 2011.

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## Issues and analysis

### Issue 1: Whether the transaction between the applicant and the corporate debtor violated Section 269SS of…

**Ratio:** A loan or deposit exceeding Rs. 20,000, if transacted in cash, is in violation of Section…

**Reasoning:** The court noted that the liquidator rejected the claim partly because the transaction…

**Interpretation:** The court interpreted Section 269SS of the Income Tax Act, 1961, strictly,…

**Application:** Given the applicant's admission that all payments were made in cash and the…

## Parties

- **Judges:** DEEPTI M…; SAMEER…
- **Advocates:** For Appli…; Vivekanandh,…; +1 more

## Timeline

- **December 12, 2011 — MOTD exe…**: Corporate Debtor executed a Memorandum of Deposit of Title Deed (MOTD) for Rs. 1 crore…
- **September 25, 2017 — Cheque i…**: Corporate Debtor issued a cheque to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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