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2021 (4) TMI 10 - NATIONAL COMPANY LAW TRIBUNAL NEW DELHI (COURT NO. IV)Undervalued Transactions - seeking declaration that the transaction of Plant and Machinery of the Corporate Debtor to Respondent No.3 as fraudulent - seeking necessary directions for cancellation of the transaction of sale of Plant and Machinery of Corporate Debtor - HELD THAT:- As per the Final Audit Report dated 15.05.2020 the book value of the Machinery is ₹ 1.56 Cr. However, on perusal of the documents placed on record by the Respondent no. 3 it has been observed that the Machinery has been purchased by the Respondent No. 3 vide bill no. 407 dated 03.05.2019 for an amount of ₹ 7,55,200/- and bill no. 408 dated 08.05.019 for an amount of ₹ 14,40,600/- (Inclusive of GST). The Final Audit Report states that during the period under audit there have been no transaction as laid down in Section 49 and with respect to Section 66 of the code, the observations made only rely on the fact that the Corporate Debtor has trans-ferred its fixed assets just before the initiation of CIRP by the way of books entries - However, on scrutinizing the details of all the documents placed on record, the Directors of the Corporate Debtor were well aware of the fact that an application has been filed on 25.01. 2019 and the same is pending for initiation CIR process against the Corporate Debtor, therefore the Directors of the Corporate Debtor deliberately entered into an undervalued transaction - These facts support that there was an intention to defraud the creditors by keeping these assets of the Corporate Debtor beyond the reach of the Creditors or any such person who is entitled to make a claim against the Corporate Debtor. These transactions are covered under the provisions of the Section 49 and 66 of the Code - the sale of plant and machinery of the Corporate Debtor to the Respondent no. 3 stands cancelled - these transactions are covered under the provisions of the Section 49 and 66 of the Code - application allowed.
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