# In the matter of Sri Balaji Forest Products Private Limited I.A. No. 742-KB-2020 in CP (IB) No. 518-KB-2018

> Read the full IBC case summary for In the matter of Sri Balaji Forest Products Private Limited I.A. No. 742-KB-2020 in CP (IB) No. 518-KB-2018. NCLT judgment…

- **Court:** NCLT
- **Order date:** 4 Jul 2022
- **Citation:** TCN-2022-NCLT-04618
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-balaji-forest-products-private-limited-ia-no-742-kb-2020-in-cp-ib-no-518-kb-c2925874

## Summary

### Background

The Resolution Professional filed an application under Sections 43, 45, 49, and 66 of the Insolvency and Bankruptcy Code, 2016, seeking to declare a lease deed as an undervalued and fraudulent transaction, reverse preferential transactions, and restrain infringement of the corporate debtor's trademark. The application was initially dismissed on preliminary issues but was revived by the NCLAT.

## Facts

The Resolution Professional of Sri Balaji Forest Products Private Limited (Corporate Debtor) filed an application under Section 43, Section 45, Section 49, and Section 66 of the Insolvency and Bankruptcy Code, 2016. The application sought to declare a lease deed as an undervalued transaction, reverse preferential transactions, and address fraudulent trading. The initial application was dismissed on preliminary issues by a different bench of the Adjudicating Authority on February 26, 2021.

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## Issues and analysis

### Issue 1: Whether the lease deed dated November 30, 2016, executed by the corporate debtor with Respondent…

**Ratio:** A lease deed executed for a grossly undervalued consideration, especially after the…

**Reasoning:** The Adjudicating Authority found that the lease deed was executed for a meagre annual…

**Interpretation:** The court interpreted Sections 45, 49, and 66 of the I&B Code, 2016, to allow…

**Application:** The lease deed dated November 30, 2016, was set aside, and Respondent Nos. 1…

## Parties

- **Judges:** Rohit K…; Harish Chander…
- **Advocates:** Joy S…; Sidhartha…; +5 more

## Timeline

- **September 30, 2014 — CD's accounts declared…**: The Corporate Debtor's accounts were…
- **February 11, 2015 — SARFAESI Act notice…**: Notice under Section 13(2) of the SARFAESI Act, 2002, was issued regarding hypothecated…

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