The Ahmedabad Bench of the National Company Law Tribunal (NCLT) has dismissed an avoidance application seeking reversal of an alleged preferential transaction worth ₹26.79 crore, holding that relief under Section 43 of the Insolvency and Bankruptcy Code (IBC) cannot be granted unless it is established that the Corporate Debtor itself granted the alleged preference.
The application arose after the Resolution Professional alleged that IDBI Bank had transferred ₹19.35 crore from the Corporate Debtor’s bank account to the account of Sintex Industries Limited and further adjusted ₹7.44 crore towards creation of a fixed deposit against a bank guarantee, aggregating to ₹26.79 crore.
According to the applicant, the…