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IBC Update: Supreme Court clarifies treatment of PUFE recoveries in resolution plans April 24, 2025
Published in: Alerts
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In a recent judgment in Piramal Capital and Housing Finance Limited vs. 63 Moons Technologies Ltd & Others, the Supreme Court has clarified key aspects relating to PUFE (Preferential, Undervalued, Fraudulent, Extortionate) transactions under the IBC. The Court upheld the Resolution Plan approved by the NCLT, affirming that the distribution of recoveries from proceedings under Section 66 (Fraudulent/Wrongful Trading) falls within the commercial domain of the CoC and the resolution applicant.
Our latest Solve-ency update decodes this critical ruling and its implications for future resolution plans.
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