# In the matter of Precision Containeurs Limited IA-2116-2022 in C.P.(IB)-2146(MB)-2019

> NCLT judgment dated 2023-03-21. Citation: TCN-2023-NCLT-04133. The Resolution Professional filed an application under Section 43 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 21 Mar 2023
- **Citation:** TCN-2023-NCLT-04133
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/precision-containeurs-limited-ia-2116-2022-in-cpib-2146mb-2019-6a1f6b86

## Summary

### Background

The Resolution Professional filed an application under Section 43 of the Insolvency and Bankruptcy Code, 2016, seeking to declare certain transactions as preferential and direct the respondents to return the amounts to the Corporate Debtor's account. The Corporate Insolvency Resolution Process (CIRP) was initiated against Precision Containeurs Limited vide an order dated 10.03.2022, based on an application filed by Stressed Assets Stabilization Fund (Financial Creditor) under Section 7 of the IBC. Ramnarayan Rajaraman was appointed as Interim Resolution Professional (IRP) and later replaced by Chetan T. Shah.

## Facts

The Corporate Debtor, Precision Containeurs Limited, underwent Corporate Insolvency Resolution Process (CIRP) initiated on 10.03.2022. The Resolution Professional (RP) filed an application (IA-2116/2022) under Section 43 of the Insolvency and Bankruptcy Code, 2016, seeking to declare certain loan repayment transactions as preferential. These transactions involved repayments to Pushpanjali Drums Pvt. Ltd., RV Lifestyle Ltd., and Vas Educomp Pvt. Ltd., all unsecured financial creditors and related parties. The total amount of these repayments was ₹2,43,40,707/-. The repayments were made within the two-year look-back period. The source of funds for these repayments included proceeds from the sale of assets and amounts received from Yashraj Containeurs Limited (YCL), an

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## Issues and analysis

### Issue 1: Whether the loan repayment transactions to Pushpanjali Drums Pvt. Ltd., RV Lifestyle Ltd., and Vas …

**Ratio:** Section 43 of the Code provides that a repayment of loan to a related party within two

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**Reasoning:** The Adjudicating Authority found that the repayments were made to related parties for

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**Interpretation:** Section 43 aims to prevent debtors from favoring certain creditors, especially

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**Application:** The Authority applied Section 43 to the facts, finding that the repayments to

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## Parties

- **Judges:** KISHORE VEMULAPALL…; Prabhat…
- **Appellants:** Chetan T.…
- **Respondents:** Precision…; Jayesh Vino…

## Timeline

- **2022-03-10 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Precision Containeurs…
- **2022-07-22 — Application…**: Resolution Professional filed an application under Section 43 of the Insolvency and…

## 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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