9911796707
TMI Blog2022 (3) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... - we are not persuaded to accept the submissions of the counsel for the Appellant that it was mandatory for the Adjudicating Authority to require an independent expert to assess evidence relating to the value of the transactions. Thus, no error has been committed by the Adjudicating Authority in accepting the case of the Resolution Professional that transaction was undervalued. The scheme of Section 49 indicates that where the corporate debtor has entered into an undervalued transaction and the Adjudicating Authority is satisfied that such transaction was deliberately entered into by such corporate debtor for keeping assets of the corporate debtor beyond the reach of any person who is entitled to make a claim against the corporate debto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant and Learned Counsel for the Resolution Professional. 2. This Appeal has been filed against the judgment and order of the Adjudicating Authority (National Company Law Tribunal), New Delhi (Court No.IV) dated 24.03.2021 in I.A No. 2277 of 2020 in CP(IB) No. 241/(ND)2019. An Application was filed by the Resolution Professional praying for following reliefs:- a. Declare the transaction of Plant and Machinery of the Corporate Debtor to Respondent No.3 as fraudulent; b. Issue necessary directions for cancellation of the transaction of sale of Plant and Machinery of Corporate Debtor to Respondent No.3; c. Pass any other Order as the Hon ble Adjudicating Authority deems fit. 3. The brief facts of the case which are necess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en no transaction as laid down in Section 49 and with respect to Section 66 of the code, the observations made only rely on the fact that the Corporate Debtor has trans-ferred its fixed assets just before the initiation of CIRP by the way of books entries. However, on scrutinizing the details of all the documents placed on record, we are of the view that the Directors of the Corporate Debtor were well aware of the fact that an application has been filed on 25.01.2019 and the same is pending for initiation CIR process against the Corporate Debtor, therefore the Directors of the Corporate Debtor deliberately entered into an undervalued transaction. These facts support that there was an intention to defraud the creditors by keeping these asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on ought not to have been declared undervalued transaction or cancelled. It is submitted that the bid was invited by the Corporate Debtor and three bids were received and the Appellant being highest bidder its bid was accepted. It also paid an amount of ₹ 7,55,200/- and ₹ 14,40,600/- which transaction cannot be said to be neither undervalued nor could have been cancelled. It is submitted that under Section 46(2) of the IB Code, 2016, the Adjudicating Authority was required to appoint an independent expert to assess evidence relating to the value of the transactions mentioned in the section. It is submitted that no expert was appointed by the Adjudicating Authority and without there being any expert opinion, decision has been tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oted by the Adjudicating Authority, the sale of the plant and machinery for only ₹ 21 lacs is clearly an undervalued transaction and the submissions of the Appellant that transaction was not undervalued is wholly incorrect and cannot be accepted. The submission made by the Learned Counsel for the Appellant is on the basis of Section 46 of the Code, which reads as follows:- 46. Relevant period for avoidable transactions. (1) In an application for avoiding a transaction at undervalue, the liquidator or the resolution professional, as the case may be, shall demonstrate that (i) such transaction was made with any person within the period of one year preceding the insolvency commencement date; or (ii) such transact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction was deliberately entered into by such corporate debtor (a) for keeping assets of the corporate debtor beyond the reach of any person who is entitled to make a claim against the corporate debtor; or (b) in order to adversely affect the interests of such a person in relation to the claim, the Adjudicating Authority shall make an order- (i) restoring the position as it existed before such transaction as if the transaction had not been entered into; and (ii) protecting the interests of persons who are victims of such transactions: 11. The scheme of Section 49 indicates that where the corporate debtor has entered into an undervalued transaction and the Adjudicating Authority is satisfied that such transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
