# In the matter of Patidar Exim Private Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03149. The application IA (IBC)/1193/2022 was filed in CP (IB) No.134/7/HDB/2020 under Sections 43,…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03149
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/patidar-exim-private-limited-8f2e3aec

## Summary

### Background

The application IA (IBC)/1193/2022 was filed in CP (IB) No.134/7/HDB/2020 under Sections 43, 44, and 236 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 35A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and Rule 11 of the NCLT Rules. The applicant, the Liquidator of the Corporate Debtor (M/s. Patidar Exim Private Limited), sought orders to deem certain transactions as preferential under Section 43 of the IBC and to restore the position as it existed before such transactions. The Corporate Debtor was admitted into CIRP on 04.02.2022, and the applicant was appointed as IRP, later confirmed as RP, and subsequently continued as Liquidator. A transactional audit was mandated during the 3rd CoC meeting, targeting

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## Facts

M/s Patidar Exim Private Limited (Corporate Debtor) was admitted into CIRP on 04.02.2022. Sunit Jagdish Chandra Shah was appointed as the Interim Resolution Professional (IRP), later confirmed as Resolution Professional (RP), and subsequently continued as Liquidator. A transactional audit was mandated during the 3rd Committee of Creditors (CoC) meeting. The audit, conducted by M/s Dipak Agarwal & Co, Chartered Accountants, covered transactions from 01.04.2017 to 05.05.2022. The audit report indicated preferential transactions amounting to Rs 1,02,09,642 carried out by the Corporate Debtor during the lookback period of two years. These transactions involved payments to a related party, M/s Patidar Timber Mart (owned by the father of Respondent No. 1), exceeding

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## Issues and analysis

### Issue 1: Whether the transactions between the Corporate Debtor and M/s Patidar Timber Mart were preferential …

**Ratio:** Section 43 of the IBC defines preferential transactions. The court considered whether the

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**Reasoning:** The court noted that the transactions between the CD and M/s Patidar Timber Mart

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**Interpretation:** Section 43 of the IBC aims to prevent a corporate debtor from unfairly favoring

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**Application:** The court examined the transactions to determine if they met the criteria for

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** M/s Patidar Exim…
- **Respondents:** Patidar Exim Pvt…; Mahender…

## Timeline

- **2022-02-04 — Admission in…**: The Corporate Debtor was admitted into…
- **2022-09-17 — Submission of…**: The transaction audit report was submitted…

## 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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