Privacy-First Forensic Engine • DPDP Act 2023 Compliant

IBC PUFE Avoidance Transactions & Section 66 Forensic Screener

A diagnostic forensic screening engine for Resolution Professionals (RPs), Committee of Creditors (CoC), Promoters, and Corporate Counsel: evaluate commercial transactions against the avoidance provisions of the Insolvency and Bankruptcy Code (IBC), 2016 (Sections 43, 45, 50, and 66). Computes statutory look-back periods, ordinary course defenses, and NCLT evidentiary exposure in-browser.

100% Client-Side Computation: Zero financial or counterparty data is transmitted to our servers. Computation executes entirely in your browser in compliance with the Digital Personal Data Protection (DPDP) Act, 2023.

Transaction Parameters & Facts

1. Transaction Characterization

2. Counterparty Relationship under Section 5(24)

3. Timing Prior to Insolvency Commencement Date (ICD)

8 Months

Months elapsed between transaction date and admission of Section 7/9/10 petition by NCLT.

4. Consideration vs Fair Market Value Benchmark

5. Section 43(3)(a) Ordinary Course of Business Status

Transaction was part of regular, customary business operations and past trade history New value was simultaneously provided to the corporate debtor (§ 43(3)(b)) Directors exercised reasonable due diligence to minimize loss to creditors (§ 66(2))

Forensic Evaluation Summary

Preferential Transaction Risk

High NCLT Exposure

IBC § 43

Look-Back Period Status:

Within statutory 2-year lookback period for related parties.

Statutory Defense Viability:

Ordinary course defense absent; vulnerable to reversal by NCLT.

Potential Liability / NCLT Order:

Clawback order under Section 44 vesting transferred asset back in Corporate Debtor.

Recommended Forensic Dossier:

Ledger copies demonstrating customary payment cycle
IBBI Registered Valuer benchmark at transaction date
Board resolution proving commercial bona fides

Consult Forensic Desk Read IBC Avoidance Manual

Key Supreme Court Precedent

Anuj Jain v. Axis Bank (2020) 8 SCC 401: Supreme Court held that mortgaging corporate debtor assets for parent company debts without direct corporate benefit falls squarely within Section 43 preferential avoidance, regardless of promoter bona fides.

ICAI Code of Ethics Pull-Model Statutory Notice This interactive diagnostic screener is provided purely for orientation, corporate due diligence, and academic evaluation under the Insolvency and Bankruptcy Code, 2016. In accordance with ICAI regulations, it does not constitute legal opinion, judicial prediction, or audit certification. Statutory determination of avoidance transactions is the exclusive prerogative of the Adjudicating Authority (NCLT).