# Mr. Venka Reddy Bathina, Liquidator vs. Mr. Tapaas Chakravarti & Ors.

> NCLT judgment dated 2026-08-20. Citation: TCN-2026-NCLT-00973. An Interlocutory Application (IA) was filed by the Resolution Professional (later substituted…

- **Court:** NCLT
- **Order date:** 20 Aug 2026
- **Citation:** TCN-2026-NCLT-00973
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/mr-venka-reddy-bathina-liquidator-vs-mr-tapaas-chakravarti-ors-4tmy7

## Summary

### Background

An Interlocutory Application (IA) was filed by the Resolution Professional (later substituted by the Liquidator) of M/s. DQ Entertainment (International) Limited, seeking to avoid preferential and undervalued transactions under Sections 43 and 45 of the IBC. The Liquidator alleged that the suspended management (Respondents) engaged in transactions causing losses to creditors, including advance repayments, consultation fee payments, and asset sales at significantly lower values.

## Facts

M/s. DQ Entertainment (International) Limited was admitted into CIRP on 17.06.2022, following a Section 7 petition by a Financial Creditor.

Mr. Madhusudhan Rao Gonugunta was appointed as the Interim Resolution Professional (IRP).

CS. Dr. Ahalada Rao Vummenthala was appointed as the Resolution Professional (RP) by the CoC on 16.07.2022.

Mr. Venka Reddy Bathina, Liquidator, was substituted as the Applicant in I.A. (IBC) No. 1273 of 2023 on 11.06.2024.

The Applicant alleged that the Respondents (suspended directors and CFO) engaged in preferential and undervalued transactions under Sections 43 and 45 of the IBC.

A Transaction Auditor (M/s. Sarath & Associates) was appointed to examine transactions from 01.04.2017 to 17.06.2022.

…

## Issues and analysis

### Issue 1: Whether the impugned transactions constitute preferential transactions within the meaning of …

**Ratio:** For a transaction to be preferential under Section 43, it must satisfy cumulative

…

**Reasoning:** The CIRP commenced on 17.06.2022. The Rs. 50 lakh repayment to Mr. Tapaas Chakravarti (a

…

**Interpretation:** The temporal requirement of the look-back period under Section 43(4) is a

…

**Application:** Since all alleged preferential transactions occurred before their respective

…

## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Venka Reddy…; CS Dr Ahalada Rao…
- **Respondents:** M/s. DQ Entertainm…; Tapaas Chak…; +4 more
- **Other parties:** CoC…; Madhusudhan Rao…
- **Advocates:** M. Maharshi…; Shreyan…; +1 more

## Timeline

- **2011-09-23 — R&A Associates…**: R&A Associates appointed as Secretarial and Legal Consultants/Corporate Law Consultants…
- **2017-04-17 — Advance Repaym…**: Rs. 50,00,000/- advance repayment made to Mr.…

## 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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