# In the matter of G P Cottfab Pvt. Ltd.

> NCLT judgment dated 2024-03-14. Citation: TCN-2024-NCLT-02046. This case involves an application (IA No. 238/JPR/2020) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 14 Mar 2024
- **Citation:** TCN-2024-NCLT-02046
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/g-p-cottfab-pvt-ltd-0cf433de

## Summary

### Background

This case involves an application (IA No. 238/JPR/2020) filed by the Resolution Professional (RP) of GP Cottfab Private Ltd., seeking a declaration that certain transactions are preferential under Section 43 of the Insolvency and Bankruptcy Code (IBC), 2016. The Adjudicating Authority had previously admitted an application under Section 9 of the IBC filed by Sona Processors (India) Limited against GP Cottfab Private Ltd. After no resolution plan was received, the Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor, and the Corporate Director was directed to be liquidated.

## Facts

Sona Processors (India) Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against GP Cottfab Private Limited. The Adjudicating Authority admitted the application under Section 9 of the IBC. Mrs. Sarita Duck was appointed as the Resolution Professional (RP). Since no resolution plan was received, the company was ordered to be liquidated. The RP filed an application (IA No. 238/JPR/2020) seeking to declare certain transactions as preferential under Section 43 of the IBC. The RP alleged that the Corporate Debtor made preferential payments to Respondents No. 1 (Yogendra Soni), No. 2 (Suman Soni), and No. 3 (Jai Shri Krishna Textile, proprietor Sumant Soni). The payments were made within two years of the admission of CIRP. The RP submitted a Forensic

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## Issues and analysis

### Issue 1: Whether the transactions between the Corporate Debtor and the Respondents constitute preferential …

**Ratio:** Section 43(2) of the IBC categorizes transactions as preferential if there is a transfer

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**Reasoning:** The court examined the transactions to determine if they provided an unfair advantage to

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**Interpretation:** Section 43 of the IBC is a deeming provision that identifies transactions that

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**Application:** The court found that the Applicant had not provided conclusive proof that the

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Sarita…
- **Respondents:** GP Cottfab…; Yogendra…

## Timeline

- **2019-09-12 — Admission of Application…**: The Adjudicating Authority admitted the application filed by Sona Processors (India)…
- **2020-02-29 — CoC Resolution to…**: The Committee of Creditors (CoC) unanimously resolved to liquidate the Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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