What was held in Dharamveer Singh Magan Singh Shekhawat v. Dharmendra Dhelariya, REEDLAW 2026 NCLAT Del 05524?

The NCLAT held that a transaction is preferential under Section 43 of the IBC only when all statutory conditions including antecedent debt and creditor benefit are satisfied.

Does every related party transaction qualify as preferential under IBC?

No, the NCLAT clarified that related party transactions lacking antecedent debt or creditor nexus do not qualify as preferential transactions.

Dharamveer Singh Magan Singh Shekhawat and Others v. Dharmendra Dhelariya and Others, REEDLAW 2026 NCLAT Del 05524

2 days ago
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REEDLAW Legal News Network | Published on 14 May 2026 | 🔗 Find Shareable Link — **REEDLAW Legal News Network | Published on 14 May 2026 |** 🔗 **Find Shareable Link**

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A transaction qualifies as a preferential transaction under Section 43 of the Insolvency and Bankruptcy Code only when all statutory ingredients, including the existence of antecedent debt and creditor-benefit, are satisfied, and transfers to related parties lacking such elements or made in the ordinary course of business cannot be treated as preferential.

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Dharamveer Singh Magan Singh Shekhawat and Others v. Dharmendra Dhelariya and Others, REEDLAW 2026 NCLAT Del 05524

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