# In the matter of Talwalkars Healthclubs Limited IA No. 421-2022 in CP (IB) No.923-MB-IV-2020

> NCLT judgment dated 2023-06-09. Citation: TCN-2023-NCLT-03027. The application IA No. 421/2022 was filed by Mr. Saurabh Kumar Tikmani, the Resolution…

- **Court:** NCLT
- **Order date:** 9 Jun 2023
- **Citation:** TCN-2023-NCLT-03027
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/talwalkars-healthclubs-limited-ia-no-421-2022-in-cp-ib-no923-mb-iv-2020-a149bb5c

## Summary

### Background

The application IA No. 421/2022 was filed by Mr. Saurabh Kumar Tikmani, the Resolution Professional (RP) of Talwalkars Healthclubs Limited (Corporate Debtor) under Section 43 of the Insolvency and Bankruptcy Code, 2016 (Code). Later, the Corporate Debtor was ordered to be liquidated, and Mr. Gajesh Labhchand Jain was appointed as Liquidator, who was substituted as the applicant. The applicant determined an amount of Rs.76 Lakhs receivable from M/s Talwalkas Club Systems Private Limited (Respondent) as a preferential transaction and sought directions for the respondent to pay the amount with 12% interest. The finding was based on a Transaction Audit Report indicating the Respondent received a payment of INR 76 Lakhs from the Corporate Debtor during the two years prior

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## Facts

Mr. Saurabh Kumar Tikmani, the Resolution Professional (RP) of Talwalkars Healthclubs Limited (Corporate Debtor), filed an application (IA No. 421/2022) under Section 43 of the Insolvency and Bankruptcy Code, 2016, seeking to declare a transaction as preferential. The RP, later replaced by Liquidator Mr. Gajesh Labhchand Jain, claimed that M/s Talwalkas Club Systems Private Limited (Respondent) owed Rs.76 Lakhs to the Corporate Debtor as a result of a preferential transaction. The basis for this claim was a Transaction Audit Report indicating that the Respondent received a payment of INR 76 Lakhs from the Corporate Debtor between 10 March 2019 and 09 March 2021, which falls within two years prior to the insolvency commencement date. The applicant sought directions for

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## Issues and analysis

### Issue 1: Whether the transaction in question falls under the purview of Section 43 of the Insolvency and …

**Ratio:** Section 43 of the Insolvency and Bankruptcy Code, 2016, deals with preferential

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**Reasoning:** The bench found that the transaction did not result in any preference being given to a

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**Interpretation:** Section 43 is interpreted to require a clear preference given to a creditor for

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**Application:** In this case, the transaction auditor's report showed that the respondent did

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Gajesh Labhchand…
- **Respondents:** Talwalkar…; Omnibus Infrastruc…

## Timeline

- **2016-01-01 — Enactment of Insolvency…**: The Insolvency and Bankruptcy…
- **2019-03-10 — Payment from Corporate…**: Payment was made from the Corporate Debtor to the Respondent between 10 March 2019 and 09…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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