# In the matter of Perfact Color Digital Prints Pvt. Ltd. IA-4187-2020 in (IB)-1974(ND)2019

> NCLT judgment dated 2022-02-25. Citation: TCN-2022-NCLT-03959. The case involves an application filed by the Resolution Professional (RP) under Section…

- **Court:** NCLT
- **Order date:** 25 Feb 2022
- **Citation:** TCN-2022-NCLT-03959
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/perfact-color-digital-prints-pvt-ltd-ia-4187-2020-in-ib-1974nd2019-a44f84aa

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 25(2)(j) r/w Sections 43, 44, 45, and 48 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking orders related to preferential, undervalued, and fraudulent transactions allegedly conducted by the Corporate Debtor. The RP sought cognizance of these transactions, penalties for the respondents, directions for restoring misappropriated amounts, and other appropriate orders. The application was filed in the context of the Corporate Insolvency Resolution Process (CIRP) initiated against Perfact Color Digital Prints Private Limited.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Perfact Color Digital Prints Private Limited on 2019-12-09. Mr. Shashi Bhushan Prasad was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Harish Taneja. The RP identified certain transactions as potentially preferential or undervalued. Specifically, a payment of Rs. 6,50,000 was made to Ms. Mansi Arya, daughter of the directors, and the disposal of vehicles was considered undervalued. The RP argued that these transactions violated Sections 43 and 45 of the IBC. The respondents, including Mr. Ashwani Arya, Mrs. Divya Arya, and Ms. Mansi Arya, contested these claims, stating that the payment to Ms. Arya was for restoring electricity supply, an essential

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## Issues and analysis

### Issue 1: Whether the payment of Rs. 6,50,000 to Ms. Mansi Arya constitutes a preferential transaction under …

**Ratio:** Section 43 of the IBC defines preferential transactions, but excludes transfers made in

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**Reasoning:** The court reasoned that the payment to Ms. Mansi Arya was for the restoration of

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**Interpretation:** Section 43 of the IBC should be interpreted in conjunction with Section 14(2)

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**Application:** The court applied the ratio to the facts by concluding that the payment for

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; AVINASH K.…
- **Appellants:** HARISH TANEJA…
- **Respondents:** PERFACT COLOR…; ASHWANI…

## Timeline

- **2019-12-09 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Perfact Color Digital…
- **2020-01-08 — CoC Consti…**: Committee of Creditors (CoC) constituted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 25(2) — Duties of resolution professional](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-25)

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