# In the matter of Paranjpe Agro Products India Private Limited

> NCLT judgment dated 2024-08-20. Citation: TCN-2024-NCLT-00780. The case involves an application (I.A. 1768/2023) filed under Sections 43, 44, 45, 50, and 66…

- **Court:** NCLT
- **Order date:** 20 Aug 2024
- **Citation:** TCN-2024-NCLT-00780
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/paranjpe-agro-products-india-private-limited-58f63e14

## Summary

### Background

The case involves an application (I.A. 1768/2023) filed under Sections 43, 44, 45, 50, and 66 of the Insolvency & Bankruptcy Code, 2016 by Mr. Ajay Marathe, the Resolution Professional of Paranjpe Agro Products India Private Limited (Corporate Debtor). The application seeks directions against the Respondents, Mr. Hrushikesh Paranjape & Another, regarding certain transactions identified as preferential, undervalued, or fraudulent based on a transaction audit report. The Corporate Debtor was admitted into CIRP on June 10, 2022. The audit report identified transactions violating Sections 43, 45, 49, 50, and 66 of the Code. The Resolution Professional seeks orders to declare certain transactions as undervalued and fraudulent, and to direct the Respondents to return

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## Facts

The Corporate Debtor, Paranjpe Agro Products India Private Limited, was admitted into Corporate Insolvency Resolution Process (CIRP) on June 10, 2022. Mr. Ajay Marathe was appointed as the Resolution Professional (RP). A transaction audit was conducted, revealing several transactions that appeared to be preferential, undervalued, or fraudulent. These transactions included the write-off of receivables amounting to Rs. 2.04 crores and Rs. 0.38 crores for Financial Years 2018-19 and 2019-20, respectively, and the write-off of stock in trade amounting to Rs. 6,56,25,806. The RP filed an application (I.A. 1768/2023) seeking orders to declare these transactions as undervalued and fraudulent and to direct the Respondents, Mr. Hrushikesh Paranjape & Another, to return the

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## Issues and analysis

### Issue 1: Whether the write-off of receivables amounting to Rs. 2.04 crores and Rs. 0.38 crores for Financial …

**Ratio:** Section 45 of the Insolvency and Bankruptcy Code, 2016 provides for the avoidance of

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**Reasoning:** The court noted that the write-off took place on or prior to 31.03.2020, while the CIRP

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**Interpretation:** Section 45 read with Section 46(1)(ii) sets a time limit for lookback period of

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**Application:** Since the write-off occurred before the lookback period, the court held that

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Ajay Ma…
- **Respondents:** Paranjpe Agro…; Hrushikesh…
- **Advocates:** Prakash S…; Khushbu Bha…

## Timeline

- **2017-04-01 — Transaction Audit…**: Start date for the transaction audit…
- **2022-06-10 — Admission in…**: Corporate Debtor admitted into Corporate…

## 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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