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TMI Blog2024 (10) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... Jain, Interim Resolution Professional for Jaypee Infratech Ltd Vs Axis Bank Ltd and Others, [ 2020 (2) TMI 1259 - SUPREME COURT ], the Hon ble Supreme Court held ' The extent of relevant time is different with reference to the relationship of the beneficiary with the corporate debtor inasmuch as, for the persons falling within the expression related party within the meaning of Section 5 (24) of the Code, such period is of two years before the insolvency commencement date whereas it is one year in relation to the person other than a related party. The conceptions of, and rationale behind, such provisions could be noticed in the excerpts from the interim report of Law Reforms Committee, as referred on behalf of the appellants.' The o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led per minutes of 4th COC Meeting dated 14.12.2021 wherein Agenda Item No.7 read as under:- Agenda 7: To file an application under Section 43 and Section 65 separately. RP informed the COC Members that presently there is procedure of filing the application under Section 43 and Section 65 separately. Also increasing the lookup period is required as the company was not operating since 2079 i.e., more than 2 years before the CIRP commencement date. After a detailed discussion, it was decided and COC approved to file the application under section 43 and section 66 of IBC Finally, it was decided for adding prayer in the application for extension in look-up period of 5 years than only 2 years. COC also agreed the fees for the advocate. 4. Follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssets of the corporate debtor are stripped many a times by the management. The suspended management conceals the data from the RP during the CIRP process. In the present matter too S. 19 (2) application was filed by the RP. 19. The present case falls squarely within the ambit of S. 43 of the Code so far as transactions with Pratap Associates is concerned. As such we have no hesitation to hold that transactions are hit by provisions of S. 43 of the Code. 20. In terms of the above observations prayers (a) and (b) are hereby allowed. R-1 to R-3 are directed to deposit the said amount of Rs. 7.78 Crores within a period of 15 days from the date of the order with the Corporate Debtor who in turn should distribute the same to the erstwhile members ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; and (b) if the preference is given to a person other than a related party, the relevant time is a period of one year preceding such commencement date. In other words, for a transaction to fall within the mischief sought to be remedied by Sections 43 and 44 of the Code, it ought to be a preferential one answering to the requirements of sub5 section (2) of Section 43; and the preference ought to have been given at a relevant time, as specified in sub-section (4) of Section 43. 26. Even when all the requirements of sub-section (2) of Section 43 of the Code are satisfied, in order to fall within the mischief sought to be remedied by Section 43, the questioned preference ought to have been given at a relevant time. In other words, for a prefer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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