# In the matter of Him Steel Pvt. Ltd.

> NCLT judgment dated 2023-09-14. Citation: TCN-2023-NCLT-01631. The case involves an application filed by the Resolution Professional (RP) of HIM Steels Pvt…

- **Court:** NCLT
- **Order date:** 14 Sept 2023
- **Citation:** TCN-2023-NCLT-01631
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/him-steel-pvt-ltd-19260fc4

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of HIM Steels Pvt Ltd, Ms. Reshma Mittal, under Section 43(1) and Section 66(1) of the Insolvency and Bankruptcy Code, 2016 (IBC). The RP sought orders from the National Company Law Tribunal (NCLT) to declare certain transactions as preferential and fraudulent, and to direct the respondents (ex-directors of the Corporate Debtor) to make contributions to the assets of the corporate debtor. The application was based on the findings of a Transaction Audit Report which revealed manipulation of books of accounts, diversion of funds, and misappropriation of assets.

## Facts

1. The Resolution Professional (RP) of HIM Steels Pvt Ltd filed an application under Section 43(1) and 66(1) of the Insolvency and Bankruptcy Code, 2016, alleging preferential and fraudulent transactions.
2. The RP's application was supported by a Transaction Audit Report which revealed manipulation of books of accounts, diversion of funds, and misappropriation of assets.
3. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor, and the RP was appointed.
4. The ex-directors of the Corporate Debtor did not fully cooperate with the RP in providing necessary documents and information.
5. The RP appointed a Transaction Auditor to conduct a transaction audit of the Corporate Debtor.
6. The Transaction Audit Report revealed that

…

## Issues and analysis

### Issue 1: Whether the transactions conducted by the ex-management of the Corporate Debtor constitute …

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

…

**Reasoning:** The NCLT observed that the transfer of money was made to related parties without any

…

**Interpretation:** Section 43 aims to prevent corporate debtors from unfairly favoring certain

…

**Application:** The NCLT applied Section 43 to the facts of the case, noting that preferential

…

## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** Reshma M…
- **Respondents:** Him Steel Pvt.…; Ashok…

## Timeline

- **2019-07-15 — CIRP Init…**: The Tribunal admitted the petition and initiated the Corporate Insolvency Resolution…
- **2019-08-09 — RP Appoin…**: In the First meeting of CoC,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43(1) — 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/him-steel-pvt-ltd-19260fc4