Mukesh Jagetia Vs Kamlesh Bhavarlal Jain (NCLT Ahmedabad)
NCLT Ahmedabad Orders ₹1.76 Crore Restoration in Sunlight Extrusion Insolvency; Related-Party Deals and Land Sale Held Avoidable
In a significant ruling under the Insolvency and Bankruptcy Code, 2016 in Mukesh Jagetia (Successful Bidder, Assignee) v. Kamlesh Bhavarlal Jain & Ors., IA No. 158 of 2022 in CP (IB) No. 261 of 2018, NCLT Ahmedabad Bench, Order dated 24.07.2026, the NCLT AHMEDABAD Bench has directed restoration of ₹1,76,47,084/- to the Liquidation estate of Sunlight Extrusion Pvt. Ltd., holding that its erstwhile promoters routed money to related parties and sold company land at a steep discount just as the company was heading into insolvency.
The Bench of Mr. Shammi Khan (Member, Judicial) and Mr. Sanjeev Sharma (Member, Technical) found that the company had quietly settled a ₹94.01 lakh related-party loan with M/s Rakesh Metal — controlled by a relative of the promoters — by assigning away its own trade receivables, even as banks and other creditors went unpaid. Separately, ₹49.89 lakh was paid out to seven related parties in the two years before the company’s ICD. A prized piece of land at MIDC, Navi Mumbai, was also sold for just ₹50 lakh, despite two independent valuers valuing its worth at over ₹82 lakh.
