# In the matter of RL Logistics Private Limited > NCLT judgment dated 2024-02-20. Citation: TCN-2024-NCLT-02516. The case involves an application under Section 43 and 60(2) of the Insolvency and Bankruptcy… - **Court:** NCLT - **Order date:** 20 Feb 2024 - **Citation:** TCN-2024-NCLT-02516 - **Category:** IBC - **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rl-logistics-private-limited-72178a86 ## Summary ### Background The case involves an application under Section 43 and 60(2) of the Insolvency and Bankruptcy Code (IBC), 2016, filed by the Resolution Professional (RP) seeking to declare the sale of six vehicles by Equitas Small Bank Ltd as preferential transactions and to restore the same. The Corporate Insolvency Resolution Process (CIRP) was initiated against R L Logistics Pvt. Ltd on February 27, 2019, and a liquidation order was passed on October 21, 2019. The RP contends that the vehicles belonging to the Corporate Debtor were sold during March 2019 (though Equitas claims September 2018) after the commencement of CIRP. The RP argues that the sale of these vehicles by Equitas Small Bank Ltd was not conducted properly, as no charges were registered with the Registrar of Companies … ## Facts The Corporate Insolvency Resolution Process (CIRP) was initiated against R L Logistics Pvt. Ltd on February 27, 2019, and a liquidation order was passed on October 21, 2019. The Resolution Professional (RP) filed an application under Section 43 and 60(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to declare the sale of six vehicles by Equitas Small Bank Ltd as preferential transactions. The RP stated that the vehicles were sold after the commencement of CIRP, although Equitas claimed they were sold in September 2018. The RP argued that Equitas did not register the charge with the Registrar of Companies (RoC) or the Regional Transport Office (RTO), and the vehicles were sold in a private sale without proper valuation or following the SARFAESI Act. The RP … ## Issues and analysis ### Issue 1: Whether the sale of six vehicles by Equitas Small Bank Ltd constitutes a preferential transaction … **Ratio:** Section 43 of the IBC defines a preferential transaction as one where a corporate debtor … **Reasoning:** The court reasoned that the sale of the vehicles benefited Equitas Small Bank Ltd, an … **Interpretation:** The interpretation of Section 43 of the IBC requires that the transaction must … **Application:** In this case, the court applied the ratio to the facts and found that the sale … ## Parties - **Judges:** SANJIV…; Venkataraman… - **Appellants:** Pavithra Sundarara… - **Respondents:** RL Logistics Pvt…; S. RAJA… ## Timeline - **2018-06-01 — Application w…**: Process of registration of… - **2018-08-25 — Quote by Thanasingh…**: Sale was made based on the quote… ## 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) --- This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rl-logistics-private-limited-72178a86