# In the matter of Le Ecosystem Technology India Private Limited I.A No.31-BB-2021 in CP (IB) No. 148-BB-2017

> NCLT judgment dated 2023-03-28. Citation: TCN-2023-NCLT-04027. The case involves an application filed by the Liquidator of Le Ecosystem Technology India…

- **Court:** NCLT
- **Order date:** 28 Mar 2023
- **Citation:** TCN-2023-NCLT-04027
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/le-ecosystem-technology-india-private-limited-ia-no31-bb-2021-in-cp-ib-no-148-bb-996cfe3e

## Summary

### Background

The case involves an application filed by the Liquidator of Le Ecosystem Technology India Private Limited, the Corporate Debtor, under Section 43(1), (2), and (4) of the Insolvency and Bankruptcy Code, 2016, seeking to reject the claim filed by Compal Electronics India Private Limited (CEPL) as a related party and place them below other creditors under the waterfall mechanism as per Section 53 of the IBC. The CIRP against the Corporate Debtor was initiated under Section 9 of the IBC in 2018. The Liquidator contends that CEPL's claim should be rejected due to their close inter-corporate relationship with the Corporate Debtor at a global level, evidenced by transactions and publicly available information. The Liquidator argues that the Corporate Debtor's balance sheet

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## Facts

Le Ecosystem Technology India Private Limited (Corporate Debtor) faced insolvency in 2018. The Liquidator filed an application to reject the claim of Compal Electronics India Private Limited (CEPL) under Section 43 of the IBC, alleging CEPL is a related party. The CIRP was initiated in 2018. The Corporate Debtor's balance sheet shows significant receivables from Le Corp, Hong Kong. Le Corp is also facing liquidation. CEPL's Noida plant was inaugurated in August 2016, and the Corporate Debtor placed an order for 35000 Superphones amounting to Rs. 49.51 crores. CEPL supplied goods worth Rs. 37.80 crores from 13.09.2016 to 21.10.2016. The Liquidator sought clarifications from CEPL regarding their status vis-à-vis Le Ecosystem Technology India Pvt Ltd. CEPL denied any

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## Issues and analysis

### Issue 1: Whether the claim of Compal Electronics India Private Limited (CEPL) should be rejected under …

**Ratio:** Section 43 of the IBC deals with preferential transactions and allows the liquidator to

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**Reasoning:** The Liquidator argued that CEPL's claim should be rejected based on evidence suggesting a

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**Interpretation:** Section 43 aims to prevent preferential treatment of certain creditors,

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**Application:** The Tribunal considered the Liquidator's arguments and evidence but ultimately

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Srikantiah…
- **Respondents:** Le Ecosystem…; Compal Electronics…

## Timeline

- **2018-01-01 — Corporate Debtor…**: Le Ecosystem Technology India Private…
- **2018-11-09 — CIRP Init…**: CIRP against the Corporate Debtor was…

## 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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