# In the matter of Charbhuja Industries Private Limited

> NCLT judgment dated 2024-02-21. Citation: TCN-2024-NCLT-02507. The case involves an application filed by the liquidator of Charbhuja Industries Private…

- **Court:** NCLT
- **Order date:** 21 Feb 2024
- **Citation:** TCN-2024-NCLT-02507
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/charbhuja-industries-private-limited-1cd5bbf2

## Summary

### Background

The case involves an application filed by the liquidator of Charbhuja Industries Private Limited for avoidance of transactions under Sections 43, 45, and 66 of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) commenced against the Corporate Debtor on 19.06.2017. The liquidator, acting as the Resolution Professional (RP), appointed a Forensic Auditor to conduct a transactional audit. The audit revealed discrepancies and mismatches in the Corporate Debtor's accounts, indicating preferential, undervalued, fraudulent, or wrongful transactions. The application seeks to address these transactions.

## Facts

Charbhuja Industries Private Limited underwent Corporate Insolvency Resolution Process (CIRP) starting 2017-06-19. The liquidator, Mr. Anil Goel, initiated an application to investigate potentially avoidable transactions. A forensic audit was conducted, covering the period from 2015-06-19 to 2017-06-19. The Corporate Debtor dealt in agro-based products. Respondents 1 and 2 were suspended directors and shareholders. Respondent 3 was an erstwhile shareholder holding 36% until 2015. Respondent 4 is the wife of R3, holding 26% at CIRP initiation. Respondent 5 is the HUF of R3, holding 14%. R6 is the mother of R3. Respondents 7 to 45 are sundry creditors, and Respondents 47 to 56 are sundry debtors. The forensic audit revealed discrepancies in the accounts. Payments

…

## Issues and analysis

### Issue 1: Whether the payments made to operational creditors (Respondents 7 to 45) constitute preferential …

**Ratio:** Section 43 of the IBC defines preferential transactions as those where a corporate debtor

…

**Reasoning:** The NCLT found that the payments to trade creditors were made in FY 2015-2016. Given the

…

**Interpretation:** The look-back period is crucial in determining whether a transaction can be

…

**Application:** Because the payments to operational creditors occurred before the relevant

…

## Parties

- **Judges:** V. G. Bisht…; Prabhat…
- **Appellants:** Anil…
- **Respondents:** Charbhuja…; Chandrakant…

## Timeline

- **2017-06-19 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP) commenced against Charbhuja Industries…
- **2017-12-06 — Appointment of Forensic…**: The Resolution Professional appointed Mr. Vishal Sharma from Advarisk, SLO Technologies…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/charbhuja-industries-private-limited-1cd5bbf2