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Unilateral entry recorded in the books of the Corporate Debtor after filing of a petition under Section 7 of IBC cannot be considered – Mr. Kailash Motilal Kakrania and Anr. Vs. Apurva Oil and Industries Pvt. Ltd. – NCLAT New Delhi

Hon’ble NCLAT observed that there is no entry in the balance sheet, prior to the date of filing of petition under Section 7, regarding the said amount. Even in the books of account of the Corporate Debtor, the amounts are not adjusted against the financial debt, and are shown separately in the balance sheet as on 31.03.2022. The Hon’ble Bench referring Khushbu Dey Chem Pvt. Ltd. V. Chemical Suppliers India Pvt. Ltd. (2024) ibclaw.in 474 NCLAT set aside the impugned judgment of NCLT.

Unilateral entry recorded in the books of the Corporate Debtor after filing of a petition under Section 7 of IBC cannot be considered – Mr. Kailash Motilal Kakrania and Anr. Vs. Apurva Oil and Industries Pvt. Ltd. – NCLAT New Delhi Read Post »

Can invocation of Bank Guarantee issued by Corporate Debtor be treated as Preferential Transaction under Section 43 of IBC? – West Bengal State Electricity Distribution Company Ltd. (WBSEDCL) Vs. Punjab National Bank and Ors. – NCLT Kolkata Bench

Hon’ble Kolkata NCLT held that one of the necessary conditions for any transaction to be labelled as a Preferential transaction relates to the assets of the Corporate Debtor, so to say that any transaction done in the relevant time by the Corporate debtor would be eligible for being called so only if done by the Corporate debtor i.e. out is its assets. However, since the Bank guarantee is a separate contract and the encashment thereof is not relatable to the assets of the Corporate Debtor, the encashment cannot be termed as Preferential transaction.

Hon’ble Bench also held that Electricity Distribution Company/the applicant has the right to invoke Bank Guarantee and the Bank should not come in the way of invoking the same. It shall not amount to dual claim as the amount recovered by invoking such Bank Guarantee can be adjusted and the admitted claim shall be revised accordingly.

Can invocation of Bank Guarantee issued by Corporate Debtor be treated as Preferential Transaction under Section 43 of IBC? – West Bengal State Electricity Distribution Company Ltd. (WBSEDCL) Vs. Punjab National Bank and Ors. – NCLT Kolkata Bench Read Post »

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