Omkarchand Maloo Liquidator For Intelligent Textiles Engineers Pvt. Ltd. Vs Yash Jatinbhai Baxi & Ors. (NCLT Ahmedabad)
The NCLT Ahmedabad considered an application initially filed by the Resolution Professional and subsequently pursued by the Liquidator of Intelligent Textile Engineers Pvt. Ltd. under Sections 43 and 66 of the Insolvency and Bankruptcy Code, 2016. The application sought directions under Sections 44, 67, 73 and 74 of the Code for recovery or restoration of amounts allegedly involved in preferential and fraudulent transactions identified in a Transaction Audit Report.
The Corporate Insolvency Resolution Process commenced on 02.08.2021, and following the liquidation order dated 19.01.2024, the applicant was substituted as the Liquidator. A Transaction Auditor, appointed pursuant to the Committee of Creditors’ decision, submitted a report dated 11.05.2022 identifying alleged preferential and fraudulent transactions. Based on the report, the applicant sought recovery of ₹51,79,000 as preferential transactions and ₹1,99,09,000 as fraudulent transactions.
The Tribunal noted that repeated attempts to serve Respondent Nos. 1 to 3 through the ordinary process were unsuccessful. By orders dated 23.06.2025, 01.07.2025 and 26.09.2025, fresh steps for service were directed. Subsequently, by order dated 30.03.2026, the Tribunal directed substituted service through publication in one English newspaper having national circulation and one vernacular newspaper circulating in the locality of the respondents’ last known residence. The applicant was also permitted to place the issue of publication expenses before the Stakeholders’ Consultation Committee.
