# In the matter of Aeon Manufacturing Private Limited I.A. (IB) No. 207-KB-2021 in C.P. (IB) No. 683-KB-2018

> NCLT judgment dated 2023-01-10. Citation: TCN-2023-NCLT-05126. The case involves an application filed by the erstwhile Resolution Professional (RP) of Aeon…

- **Court:** NCLT
- **Order date:** 10 Jan 2023
- **Citation:** TCN-2023-NCLT-05126
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aeon-manufacturing-private-limited-ia-ib-no-207-kb-2021-in-cp-ib-no-683-kb-2018-ce2a2e44

## Summary

### Background

The case involves an application filed by the erstwhile Resolution Professional (RP) of Aeon Manufacturing Private Limited under sections 66 and 67 of the Insolvency and Bankruptcy Code (IBC), seeking directions regarding certain transactions undertaken by the former directors of the Corporate Debtor (CD). The RP alleges that high-value cash and credit sale transactions were entered into with respondents, potentially defrauding creditors. The Corporate Debtor was admitted into CIRP on 30 October 2019, and the Resolution Plan was approved on 11 May 2021. The application seeks to address transactions that occurred prior to the commencement of CIRP, specifically focusing on potentially fraudulent activities by the former directors.

## Facts

Aeon Manufacturing Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by Bank of India under Section 7 of the IBC. Raj Singhania was appointed as the Resolution Professional. The CIRP was admitted on 30 October 2019, and a resolution plan was approved on 11 May 2021. The Resolution Professional filed an application (I.A. (IB) No. 207/KB/2021) under sections 66 and 67 of the IBC, alleging that the former directors of Aeon Manufacturing Private Limited engaged in fraudulent transactions, including high-value cash transactions and credit sales, to the detriment of creditors. The alleged transactions occurred prior to the commencement of CIRP. The Resolution Professional received some documents in February 2020 and formed a preliminary

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional under sections 66 and 67 of the …

**Ratio:** The maintainability of an application for avoidance transactions after the approval of a

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**Reasoning:** The court reasoned that the Resolution Professional must conduct a thorough analysis of

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**Interpretation:** The interpretation of Section 66 and 67 of the IBC, along with the CIRP

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**Application:** In this case, the court found that the Resolution Professional did not

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Appellants:** Raj Sing…
- **Respondents:** Aeon Manufacturing…; Om Prakash…

## Timeline

- **2018-01-01 — C.P. (IB) No.…**: Main Company Petition…
- **2019-10-30 — CIRP Admi…**: Corporate Debtor…

## 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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