Legal Snippets

Phoenic Are Private Limited v. Spade Financial Services Limited and ors

For the success of the Insolvency regime, it is necessary, that person taking undue advantage of IBC provisions be prevented from introducing sham transactions so that the same doesn’t operate to detriments of rights of legitimate creditors. Such sham transactions are to be regarded as “avoidable transactions”, which can be tested on the test of “The real nature of transaction”.

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