# In the matter of Sanaa Syntex Private Limited MA 436-2018 in CP No. 172-IBC-NCLT-MB-MAH-2017

> NCLT judgment dated 2019-05-07. Citation: TCN-2019-NCLT-03433. The Corporate Insolvency Resolution Process (CIRP) of Sanaa Syntex Private Limited commenced on…

- **Court:** NCLT
- **Order date:** 7 May 2019
- **Citation:** TCN-2019-NCLT-03433
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sanaa-syntex-private-limited-ma-436-2018-in-cp-no-172-ibc-nclt-mb-mah-2017-a4d6a103

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) of Sanaa Syntex Private Limited commenced on 2017-08-22, following the admission of a Section 7 application filed by State Bank of India. The resolution plan was not approved, leading to a liquidation order on 2018-07-19, and Mr. Anuj Bajpai was appointed as the Liquidator. The Liquidator filed MA 436/2018 seeking various reliefs related to fraudulent and preferential transactions.

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Sanaa Syntex Private Limited commenced on August 22, 2017, following the admission of a Section 7 application by State Bank of India. The resolution plan was not approved, leading to a liquidation order on July 19, 2018, and Mr. Anuj Bajpai was appointed as the Liquidator. The Liquidator discovered several fraudulent and preferential transactions during the CIRP. These included the transfer of assets without corresponding payments, fictitious sales to Konark Synthetics Ltd. to obtain inflated bill discounting facilities from SBI, and the preferential repayment of loans to Respondent No. 1 (Sunil Kathuria) over secured loans from banks. The registered office of the Corporate Debtor was changed without following due

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## Issues and analysis

### Issue 1: Whether the transactions undertaken by the Corporate Debtor are fraudulent and preferential in …

**Ratio:** Section 43 of the I&B Code defines preferential transactions and relevant time. A

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**Reasoning:** The NCLT observed that the transactions stated in paras 15, 18, 20, 22, 24, 26 & 28

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**Interpretation:** Section 43 of the I&B Code aims to prevent a corporate debtor from favoring

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**Application:** The NCLT applied Section 43 to the transactions identified by the Liquidator,

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Ram Ratan K…
- **Respondents:** Sanaa Syntex…; Sunil Kat…

## Timeline

- **2017-08-22 — Commencement…**: Corporate Insolvency Resolution Process of Sanaa Syntex Private Limited commenced…
- **2018-07-19 — Liquidation…**: Liquidation order was passed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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