This appeal arose u/s 61 of the Insolvency and Bankruptcy Code, 2016, filed by the Suspended Director...

This appeal arose u/s 61 of the Insolvency and Bankruptcy Code, 2016, filed by the Suspended Director against the Adjudicating Authority's order. The Liquidator had obtained a Transaction Audit Report, which identified a payment of Rs. 3,67,900/- to the Suspended Director as a preferential transaction. The Adjudicating Authority rightly noted that this payment placed the Suspended Director in a beneficial position against the provisions of Section 53, which prioritizes secured creditors and workmen over unsecured creditors. The Suspended Director could have staked his claim for the outstanding unsecured loan u/s 53's waterfall mechanism. Since the Liquidator formed an opinion based on the Transaction Audit Report and filed an application be..... .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X