# In the matter of Satra Properties (India) Limited

> NCLT judgment dated 2024-04-02. Citation: TCN-2024-NCLT-01875. This application, IA 1626/2023, was filed under Section 60(5) of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Apr 2024
- **Citation:** TCN-2024-NCLT-01875
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/satra-properties-india-limited-201a944c

## Summary

### Background

This application, IA 1626/2023, was filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016, by Ms. Vaishali Patrikar, the Resolution Professional, in the Corporate Insolvency Resolution Process (CIRP) of M/s Satra Properties (India) Limited, the Corporate Debtor. The application seeks directions against the Respondents to compensate the loss suffered by the Creditors of the Corporate Debtor, alleging fraudulent transactions. The Corporate Insolvency Resolution Process (CIRP) was initiated after the admission of Company Petition No:016 1632 of 2019 on 03rd August 2020.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Satra Properties (India) Limited after the admission of Company Petition No:016 1632 of 2019 on 03rd August 2020. Ms. Vaishali Patrikar was appointed as the Resolution Professional. The Resolution Professional filed IA 1626/2023 alleging fraudulent transactions carried out by the Corporate Debtor's suspended directors with the intent to defraud creditors. The application focuses on four specific transactions: Transaction No. 1 involves an advance of INR 29.35 Crore given to Dev Land & Housing Private Limited (Respondent No. 1) against property, which was later written off. A Memorandum of Understanding (MOU) and a Deed of Cancellation were executed, but the MOU was printed on a Rs. 100

…

## Issues and analysis

### Issue 1: Whether the transaction with Respondent No. 1 falls …

**Ratio:** Section 66 of the Insolvency & Bankruptcy Code, 2016 allows the Adjudicating

…

**Reasoning:** The NCLT considered that the parties had executed a Memorandum of Understanding for

…

**Interpretation:** The court interpreted Section 66 to require evidence of intent to defraud

…

**Application:** The NCLT found that the transaction with Respondent No. 1 did not fall within

…

## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Vaishali Pa…
- **Respondents:** M/s Satra…; M/s Dev Land and…

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition No:016…
- **2020-08-03 — Admission of Company…**: Company Petition No:016 1632 of 2019 was admitted by the Tribunal against the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

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/satra-properties-india-limited-201a944c