Authority: National Company Law Tribunal (NCLT), Amaravati Bench
Order Date: 29 June 2026
Case Overview
This is an interlocutory application (IA (IBC)(DIS)/1/2025) filed within the main insolvency petition CP (IB)/31/7/AMR/2021. The petition was originally filed by the Financial Creditor, State Bank of India, against the Corporate Debtor, Ethnic Spices Pvt. Ltd., under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Debtor had previously been ordered into liquidation on 27 March 2023. The current application concerns the liquidation process, specifically the investigation of certain transactions.
The matter before the bench was a request from the Liquidator's Professional Corporate Insolvency Resolution Process (PCIRP) representative, Ms. Devangi. She submitted that a Transaction Auditor had been appointed on 12 June 2026. The purpose of this audit is to conduct a transaction review to identify potential Preferential, Undervalued, Fraudulent, or Extortionate (PUFE) transactions as defined under the IBC. The applicant sought a four-week extension to complete the process of filing the formal PUFE application.
Final Outcome
The two-member bench, comprising Judicial Member Shri Kishore Vemulapalli and Technical Member Shri Umesh Kumar Shukla, granted the requested four-week extension. The liquidator is to file the necessary findings by way of a Memo or a formal PUFE application within this period. The matter has been listed for its next hearing and further consideration on 07 August 2026.
Topics: Insolvency, Liquidation Process, PUFE Transaction Audit