# In the matter of Adi Ispat Private Limited

> NCLT judgment dated 2024-05-02. Citation: TCN-2024-NCLT-01477. The case involves an application (I.A. (IB) No. 314 of 2022) filed in an ongoing Corporate…

- **Court:** NCLT
- **Order date:** 2 May 2024
- **Citation:** TCN-2024-NCLT-01477
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/adi-ispat-private-limited-c05eee13

## Summary

### Background

The case involves an application (I.A. (IB) No. 314 of 2022) filed in an ongoing Corporate Insolvency Resolution Process (CIRP) against Adi Ispat Private Limited. The application, filed under Sections 43 and 66 of the Insolvency and Bankruptcy Code, 2016, seeks to declare certain transactions as preferential and fraudulent. The CIRP commenced on 22.11.2019. There was a change in resolution professionals due to CBI proceedings against the initial RP, causing delays. The application seeks condonation of delay in filing and declaration of certain transactions as preferential and fraudulent.

## Facts

Adi Ispat Private Limited was admitted into Corporate Insolvency Resolution Process (CIRP) on 2019-11-22 under Section 7 of the IBC. The initial resolution professional was replaced due to CBI proceedings, causing delays. The applicant, the new resolution professional, filed an application (I.A. (IB) No. 314 of 2022) seeking to declare certain transactions as preferential and fraudulent under Sections 43 and 66 of the IBC. The application identified deviations in the books of accounts, preferential transactions, fraudulent transactions, and wrongful trading. The applicant claimed that certain cash transactions were suspicious. The respondents, Amit Kumar Sarawgi and Sumit Kumar Sarawgi, argued that the transactions were neither preferential nor fraudulent, attributing

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## Issues and analysis

### Issue 1: Whether the delay in filing the …

**Ratio:** Regulation 35A of the CIRP Regulations, 2016, requires the resolution professional to

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**Reasoning:** The court considered the reasons for the delay, including the replacement of the

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**Interpretation:** The court interpreted Regulation 35A as directory in character, not mandatory,

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**Application:** The court condoned the delay in filing the application, finding the reasons

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** State Bank of…
- **Respondents:** Adi Ispat Private…; Amit Kumar…

## Timeline

- **2019-11-22 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP) commenced against Adi Ispat Private…
- **2021-09-21 — RP Replac…**: NCLT Kolkata Bench passed an order replacing the erstwhile resolution professional due to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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