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TMI Blog2024 (3) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... crutiny and evidence - HELD THAT:- The Adjudicating Authority has recorded only its conclusions and that too without considering the preferential, undervalued and fraudulent, each transaction separately and there is general observation that the transactions are undervalued transactions as well as preferential and fraudulent transactions. The ingredients of preferential, undervalued and fraudulent transaction are entirely different and there has to be application of mind to the ingredients of each transaction to come to conclusion that ingredients are satisfied and the transaction falls in the said category adverting to the given pleadings in the application. The Adjudicating Authority ought to have adverted to the said pleadings and returne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d has not adjudicated about the ingredients of Section 43, 45, 49 and 66, specifically. It is sub mitted that in view of the judgment of Hon ble Supreme Court in Anuj Jain vs. Axis Bank Limited and Ors. there has to be consideration for the relevant ingredients which are different for preferential transactions, undervalued transactions as well as fraudulent transactions. Learned counsel for the Appellant submits that the Adjudicating Authority relying on the opinion of the Resolution Professional proceeded to allow the application without returning any finding that ingredients are proved. 3. Learned counsel for the Resolution Professional refuting the submissions of learned counsel for the Appellant submits that the Resolution Professional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansaction is undervalued requires a different enquiry as per Sections 45 and 46 of the Code and significantly, such application can also be made by the creditor Under Section 47 of the Code. The consequences of undervaluation are contained in Sections 48 and 49. Per Section 49, if' the undervalued transaction is referable to Sub-section (2) of Section 45, the Adjudicating Authority may look at the intent to examine if' such undervaluation was to defraud the creditors. On the other hand, the provisions of Section 66 related to fraudulent trading and wrongful trading entail the liabilities on the persons responsible therefor. We are not elaborating on all these aspects for being not necessary as the transactions in question are alread ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... back period. 28. The Resolution Professional has clearly determined the undervalued transactions as well as preferential and fraudulent transactions. There transactions entered into with Respondent Nos. 3, 4, 5, 6, 7, 8, 11 by Respondents No.1 and 2 were clearly done with the intention to defraud the other creditors, hence, the Respondent Nos. 1 and 2 have entered into fraudulent transactions. 7. When we look into the aforesaid paras, it is clear that the Adjudicating Authority has recorded only its conclusions and that too without considering the preferential, undervalued and fraudulent, each transaction separately and there is general observation that the transactions are undervalued transactions as well as preferential and fraudulent tra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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