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TMI Blog2018 (10) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal against order dated 26th April, 2018 passed by the Adjudicating Authority (National Company Law Tribunal) Single Bench Chennai, whereby and whereunder the application preferred by the Appellant under Section 43 of the Insolvency and Bankruptcy Code, 2016 (for short 'I&B Code') has been rejected. 2. Learned counsel for the Appellant submitted that the Corporate Debtor made preferential transaction of in favour of the 2nd Respondent by executing a Sale Deed on 30.05.2016 of which final payment was subsequently made between 30.06.2016 and 14.10.2016. 3. However, the learned counsel appearing on behalf of the 2nd Respondent disputed the aforesaid fact and submitted that the consideration amount for executing of Sale Deep dated 30.05.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creditor or a surety or a guarantor for or on account of an antecedent financial debt or operational debt or other liabilities owed by the corporate debtor; and (b) the transfer under clause (a) has the effect of putting such creditor or a surety or a guarantor in a beneficial position than it would have been in the event of a distribution of assets being made in accordance with section 53. (3) For the purposes of sub-section (2), a preference shall not include the following transfers- (a) transfer made in the ordinary course of the business or financial affairs of the corporate debtor or the transferee; (b) any transfer creating a security interest in property acquired by the corporate debtor to the extent that- (i) such sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Corporate Debtor and therefore, for preferring an application under Section 43 in respect to transaction made with 2nd Respondent one has to refer to clause (b) of Sub- section (4) of Section 43. In the said provision the period of one year preceding the insolvency commencement date is prescribed to find out whether any preferential transaction was made in favour of any person other than the related party. 7. Admittedly, the insolvency commencement date (date of admission) in the present case is 16.06.2017, the execution of Sale Deed reached finality on 30.05.2016 that is much prior to one year preceding the insolvency commencement dated. 8. In that view of the aforesaid finding we hold that the application under Section 43 of I&B Code ..... X X X X Extracts X X X X X X X X Extracts X X X X
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