# In the matter of Manor Floatel Limited

> NCLT judgment dated 2024-05-22. Citation: TCN-2024-NCLT-01285. The case involves an application by the Resolution Professional (RP) of Manor Floatel Ltd…

- **Court:** NCLT
- **Order date:** 22 May 2024
- **Citation:** TCN-2024-NCLT-01285
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manor-floatel-limited-83f56e32

## Summary

### Background

The case involves an application by the Resolution Professional (RP) of Manor Floatel Ltd against its former directors, Mamba Pal and Shubha Pal, under Sections 43, 45, and 66 of the Insolvency and Bankruptcy Code, 2016. The RP sought adjudication on a forensic audit report, alleging avoidance transactions. The financial creditor had initiated CIRP against Manor Floatel Ltd under Section 7 of the I&B Code, which was admitted on 2018-01-10. The RP appointed a forensic auditor who identified potentially suspect transactions, including discrepancies in trade payables, trade receivables, and revenue booking.

## Facts

The financial creditor initiated the Corporate Insolvency Resolution Process (CIRP) against Manor Floatel Ltd, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code (I&B Code). The petition was admitted on January 10, 2018. During the CIRP, the Resolution Professional (RP) formed an opinion about the possibility of avoidance transactions and appointed a forensic auditor. The forensic auditor's report highlighted several observations involving avoidance transactions under Sections 43, 45, 50, and 66 of the I&B Code. The RP then filed an application seeking reliefs based on the forensic audit report. The report identified discrepancies between the audited financial statements and the data provided by the management, including differences in

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## Issues and analysis

### Issue 1: Whether the application for avoidance transactions is maintainable when the resolution plan does …

**Ratio:** The Hon'ble Apex Court in the case of Tata Steel BSL Ltd. v. Venus Recruiter (P) Ltd.

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**Reasoning:** The court relied on the judgment of the Hon'ble Apex Court in Tata Steel BSL Ltd. v.

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**Interpretation:** This interpretation emphasizes the importance of including provisions for

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**Application:** In this case, the resolution plan did not contain any provision to continue

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## Parties

- **Judges:** BIDISHA BA…; SHRI. D.A…
- **Appellants:** Anil Agarwal,…
- **Respondents:** MANOR FLOATEL…; Mamba…

## Timeline

- **2018-01-10 — CIRP Admi…**: The Adjudicating Authority admitted the petition filed by the financial creditor…
- **2019-01-09 — Communication from…**: The successful resolution applicant issued a written communication stating that he has no…

## 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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