# In the matter of Radiance Properties (India) Pvt. Ltd. IA-2318-2022 in CP-IB-1409-(MB)-2020

> NCLT judgment dated 2023-06-23. Citation: TCN-2023-NCLT-02835. The case involves an application filed by the Resolution Professional (RP) under Section 43(1)…

- **Court:** NCLT
- **Order date:** 23 Jun 2023
- **Citation:** TCN-2023-NCLT-02835
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/radiance-properties-india-pvt-ltd-ia-2318-2022-in-cp-ib-1409-mb-2020-15f8b0de

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 43(1) r/w 44(1) and 66 of the Insolvency & Bankruptcy Code, 2016, seeking a declaration that a transaction is either a preferential or fraudulent transaction. The Corporate Insolvency Resolution Process (CIRP) was initiated against Radiance Properties (India) Pvt. Ltd. on 26.11.2021, and the RP was appointed to manage the process. During the CIRP, an amount of Rs. 52,50,000/- was transferred from the Corporate Debtor's account to Nexus Central Lab Services Pvt. Ltd. on 11.05.2021.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Radiance Properties (India) Pvt. Ltd. on 26.11.2021. Anuj Bajpai was appointed as the Resolution Professional (RP). During the CIRP, on 11.05.2021, an amount of Rs. 52,50,000/- was transferred from the Corporate Debtor's account to Nexus Central Lab Services Pvt. Ltd. This payment was made at the behest of Pratibha Ramesh Patel (Respondent) towards the purchase of an Audi Q7. The Audi Q7 was registered in the name of Pratibha Ramesh Patel. Upon reviewing the Corporate Debtor's bank statement on 15.03.2022, the RP discovered the transaction and contacted Nexus Labs. Nexus Labs confirmed on 16.03.2022 that the payment was for the sale of the Audi Q7 and provided a copy of the Registration

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## Issues and analysis

### Issue 1: Whether the transfer of Rs. 52,50,000/- from the Corporate Debtor's account to Nexus Central Lab …

**Ratio:** Section 43 of the Insolvency & Bankruptcy Code defines preferential transactions. A

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**Reasoning:** The NCLT reasoned that the payment of Rs. 52,50,000/- resulted in the payment of an

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

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**Application:** In this case, the NCLT applied the ratio of Section 43 to the facts. The

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Anuj Ba…
- **Respondents:** Radiance Propertie…; Pratibha Ramesh…

## Timeline

- **2021-11-26 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Radiance Properties…
- **2021-05-11 — Payment to Ne…**: Rs. 52,50,000/- transferred from Corporate Debtor's account to Nexus Central Lab Services…

## 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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