Case Law Details
Ankur Kumar Vs Jitendra Kikavat & others (NCLT Mumbai)
In the case of Ankur Kumar vs. Jitendra Kikavat & others (NCLT Mumbai), the National Company Law Tribunal (NCLT) dealt with multiple applications filed by the Resolution Professional (RP), Mr. Ankur Kumar, of Mahavir Roads and Infrastructure Private Limited (Corporate Debtor). These applications were filed under section 43 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to avoid preferential transactions conducted by the Corporate Debtor with various related parties.
Background and Procedural History
The Corporate Insolvency Resolution Process (CIRP) of Mahavir Roads & Infrastructure Pvt. Ltd. commenced on 21 February 2019, following an insolvency petition by a Financial Creditor under Section 7 of the IBC. Mr. Ankur Kumar was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional by the Committee of Creditors (CoC).
During the CIRP, it was discovered through a transaction audit by M/s. BKA & Company that several transactions undertaken by the Corporate Debtor with its related parties, particularly its directors, could be categorized as preferential transactions under Section 43 of the IBC. These transactions, which occurred in the two years preceding the commencement of CIRP, were scrutinized for potential avoidance under the IBC.
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