NCLT Jaipur Bench dismissed an application by SBI's Bankruptcy Trustee seeking to void a 192.49 gm jewelry transfer from guarantor Kanak Biyani to her son.
The Tribunal ruled the transaction did not meet Section 165 IBC criteria for a preferential transaction as the son was not a creditor of the bankrupt.
The Respondent claimed the jewelry was held in trust for family members and was transferred for an education loan, not to prefer a creditor.
The order clarifies the dismissal does not adjudicate final ownership of the jewelry, leaving that question open for separate determination.