Topic

preferential transaction

1 articleLatest May 2026
Section 43 IBC | Delayed Mortgage Perfection Within Look-Back Period Still Preferential Transaction : NCLAT
Case Law Analysis
|National Company Law Appellate Tribunal

Section 43 IBC | Delayed Mortgage Perfection Within Look-Back Period Still Preferential Transaction : NCLAT

NCLAT rules that a mortgage executed seven years after loan disbursement but within the one-year look-back period under Section 43 IBC constitutes a preferential transaction, regardless of prior contractual intent. The ruling clarifies that timing of security perfection-not just loan origination-determines vulnerability to avoidance, impacting lenders and resolution professionals in CIRP.