Section 46

In an application for avoidance of an undervalued transaction, the liquidator or the resolution professional, as the case may be, shall demonstrate that –

such transaction was made with any person within the period starting from one year preceding the initiation date and ending on the insolvency commencement date; or 135 The words “of section 43” omitted by Act No. 26 of 2018, sec. 28 (w.e.f. 6-6-2018).

such transaction was made with a related party within the period starting from two years preceding the initiation date and ending on the insolvency commencement date.136

The Adjudicating Authority may require an independent expert to assess evidence relating to the value of the transactions mentioned in this section.