Question

When shall a corporate debtor be deemed to have given a preference as per the provisions of preferential transactions under the IBC?

Q: Answer-When shall a corporate debtor be deemed to have given a preference as per the provisions of preferen...

Section 43-Preferential transactions and relevant time 2 A corporate debtor shall be deemed to have given a preference, if a there is a transfer of property or an interest thereof of the corporate debtor for the benefit of a creditor or a surety or a guarantor for or on account of an antecedent financial debt or operational debt or other liabilities owed by the corporate debtor and b the transfer under clause a has the effect of putting such creditor or a surety or a guarantor in a beneficial position than it would have been in the event of a distribution of assets being made in accordance with section 53.

A If there is a transfer of property or an interest thereof of the corporate debtor for the benefit of a creditor or a surety or a guarantor for or on account of an antecedent financial debt or operational debt or other liabilities owed by the corporate debtor

B If the transfer is made in the ordinary course of the business or financial affairs of the corporate debtor or the transferee

C If the transfer has the effect of putting a creditor or a surety or a guarantor in a beneficial position than it would have been in the event of a distribution of assets

D All a b & c

E Both a & c

Practice Next