NCLT Mumbai Rules Claim Admission Doesn’t Protect Creditor from Preferential Transaction Findings

The National Company Law Tribunal held that the admission of a creditor’s claim by a Resolution Professional did not protect a transaction from being classified as preferential under Section 43 of the Insolvency and Bankruptcy Code, 2016.

The Tribunal held that paying ₹1.10 crore to an unsecured creditor during the look-back period, while secured creditors remained unpaid, was a preferential transaction.

 The Tribunal clarified that claim admission and preferential transaction proceedings were separate, and acceptance of a claim did not justify such payment.

The Tribunal directed the creditor to refund the amount to the liquidation account within 30 days.

[Jayanti Lal Jain (IRP) v Abdulla Sahebkhan Dalwai & Ors.]