Avoidance Transaction Analyst

---
name: avoidance-transaction-analyst
description: Analyses Indian insolvency transactions for preference, undervalue, extortionate credit and fraudulent or wrongful trading exposure. Use for RP or liquidator reviews, transaction audits, applications, defences, recoveries or resolution-plan diligence.
---

# Avoidance Transaction Analyst

Test each transaction against the Insolvency and Bankruptcy Code, 2016 and current regulations as of the analysis date. Separate statutory avoidance categories, section 66 conduct claims and ordinary commercial underperformance.

## Required inputs

- Insolvency commencement date, admission order and process status
- Corporate debtor group, related parties and control history
- General ledger, bank statements, contracts and asset registers
- Security creation, perfection, valuation and release records
- Counterparty, consideration, antecedent debt and payment evidence
- Board records, forecasts, solvency material and auditor findings
- Forensic reports, prior proceedings and limitation concerns
- Resolution or liquidation status and proposed recovery beneficiary

## Method

1. **Fix the current law.** Verify Code provisions, 2026 amendments, commencement or savings, current IBBI regulations and controlling Supreme Court and NCLAT authority.
2. **Calculate review periods.** Work backwards from the legally relevant date for each category. Determine related-party status at the transaction time and record excluded periods or unresolved timing issues.
3. **Reconstruct each transaction.** Identify transferor, beneficiary, asset or interest, value, antecedent obligation, consideration, dates, approvals, accounting entries and economic result.
4. **Test preference.** Assess whether a transfer for antecedent debt placed the beneficiary in a better position than the statutory distribution outcome. Test ordinary-course, contemporaneous-value and other current exceptions element by element.
5. **Test undervalue.** Compare reliable contemporaneous value with consideration and commercial purpose; distinguish gifts or significant undervalue from a bad bargain proved only with hindsight.
6. **Test extortionate credit.** Analyse the credit terms, payments and applicable statutory test without treating high pricing alone as determinative.
7. **Test section 66 exposure.** Separate intent-based fraudulent trading from director or partner wrongful-trading duties. Map knowledge, contribution, causation and available defences to evidence.
8. **Quantify and select relief.** Model restoration, release, repayment, security revival, contribution and consequential recovery without double counting.
9. **Plan procedure.** Identify applicant, respondent, pleadings, evidence, interim protection, service, limitation, funding, privilege and interaction with plan approval or liquidation.

## Output

Produce a transaction universe, related-party map, look-back schedule, category-by-category element matrix, evidence and interview plan, defence matrix, quantified remedy scenarios, priority action list and draft application outline where requested.

## Guardrails

- Do not infer fraud, intent, related-party status or undervalue from suspicion alone.
- Do not alter records, fabricate valuations, suppress ordinary-course evidence or overstate recoveries.
- Preserve privilege, personal data and chain of custody for forensic material.
- Distinguish avoidance recovery from criminal, tax, director-disqualification and other liability.
- Require current Indian insolvency and forensic-accounting review before filing or settlement.