# In the matter of RSJ Developers Pvt. Ltd.

> NCLT judgment dated 2023-08-31. Citation: TCN-2023-NCLT-01816. The case pertains to an application filed under Section 43 read with Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 31 Aug 2023
- **Citation:** TCN-2023-NCLT-01816
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rsj-developers-pvt-ltd-7226d6d4

## Summary

### Background

The case pertains to an application filed under Section 43 read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions regarding preferential transactions. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2021-10-01. The applicant, the Resolution Professional (RP), sought the recovery of Rs. 4,93,00,000 from Respondent No. 1 and 2, alleging preferential payments made to them by the Corporate Debtor. The RP's appointment was confirmed on 2021-11-27. The RP identified payments made to Respondent No. 1 between 2020-08-10 and 2020-09-24 from the Corporate Debtor's bank account, which were deemed preferential.

## Facts

The Corporate Insolvency Resolution Process (CIRP) against RSJ Developers Pvt. Ltd. was initiated on 2021-10-01. Naresh Munjal was initially appointed as the Interim Resolution Professional (IRP). The first meeting of the Committee of Creditors (CoC) was held on 2021-11-02, where the applicant, Puneet Sakhuja, was appointed as the Resolution Professional (RP). The appointment was confirmed on 2021-11-27. The RP discovered that payments totaling Rs. 4,93,00,000 were made by RSJ Developers Pvt. Ltd. to Shiv Kumar Jatia (Respondent No. 1) between 2020-08-10 and 2020-09-24. These payments were made from the Corporate Debtor's account with South Indian Bank towards repayment of an unsecured loan. Shiv Kumar Jatia was a suspended director of the Corporate Debtor, making him

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## Issues and analysis

### Issue 1: Whether the payments made by the Corporate Debtor to Respondent No. 1 constitute preferential …

**Ratio:** Section 43 of the IBC defines preferential transactions as those where a corporate debtor

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**Reasoning:** The court reasoned that the payments made to Respondent No. 1, a suspended director and

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**Interpretation:** Section 43(4) of the IBC defines the relevant time for determining preferential

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**Application:** The court applied the definition of preferential transactions to the facts,

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## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** A ONE GREENFIELD…
- **Respondents:** RSJ DEVELOPERS…

## Timeline

- **2021-10-01 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2021-11-02 — RP Appoin…**: Puneet Sakhuja appointed as the Resolution Professional (RP) during the first meeting of…

## 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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