INTIMATION UNDER REGULATIONS 30 OF SEBI )LODR), REGULATIONS, 2015 REGRADING ORDER PASSED BY HON''BLE NCLT MUMBAI, BENCH IN IA/4648/2023 UNDER SECTION 43 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016
Awaiting price reaction for this filing.
The NCLT Mumbai Bench has allowed an application by the Resolution Professional of KSS Limited, declaring two transactions worth Rs. 47.92 lakh as preferential and ordering recovery. The payments were made to two sister concerns — Rs. 39 lakh to K Sera Sera Miniplex Limited and Rs. 8.92 lakh to K Sera Sera Digital Cinema Limited — in January 2022, shortly before CIRP was admitted on 24 January 2023. The tribunal ruled these were related-party payments made outside the ordinary course of business and within the two-year look-back period, giving those parties an unfair advantage over other creditors. The six suspended directors have been directed to jointly and severally repay Rs. 47,92,646 with interest at SBI PLR plus 2% within 30 days. The Resolution Professional is now issuing demand notices to recover the amount for the corporate debtor.
This is a positive development for creditors of KSS Limited as it recovers value into the insolvent company's estate. However, recovery from already-suspended directors may be uncertain in practice, and the stock remains under CIRP with no clear resolution timeline yet.