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2019 (9) TMI 590 - AT - Insolvency and BankruptcyLiquidation order - Financial Creditor - section 5(7) read with Section 5(8) of the ‘I&B’ Code - HELD THAT:- Similar issue fell for consideration before this Appellate Tribunal in Y. SHIVRAM PRASAD AND ASSET RECONSTRUCTION COMPANY (INDIA) LTD. VERSUS S. DHANAPAL & ORS. AND SERVALAKSHMI PAPER LTD. & ORS[2019 (5) TMI 386 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI] where it was held that The liquidator is required to act in terms of the aforesaid directions of the Appellate Tribunal and take steps under Section 230 of the Companies Act. If the members or the ‘Corporate Debtor’ or the ‘creditors’ or a class of creditors like ‘Financial Creditor’ or ‘Operational Creditor’ approach the company through the liquidator for compromise or arrangement by making proposal of payment to all the creditor(s), the Liquidator on behalf of the company will move an application under Section 230 of the Companies Act, 2013 before the Adjudicating Authority i.e. National Company Law Tribunal, Chennai Bench. We direct the Liquidator to follow the provisions of Sections 35,37,38, 39 and 40 of the ‘I&B’ Code and decide the claim. Thereafter, it will ensure that instead of liquidating the assets of the ‘Corporate Debtor’ steps are taken for Arrangement / Scheme to frame u/s 230 of the Companies Act, 2013. If Promoters / Members of the ‘Corporate Debtors’ including the Appellant give any proposal for entering into an Agreement or Scheme in terms of Section 230 of the Companies Act, 2013 or any other Creditors, the liquidator is required to act in accordance with the directions of this Appellate Tribunal in Y. Shivram Prasad Vs. S. Dhanapal & Ors. The Liquidator in the meantime will also ensure that the ‘Corporate Debtor’ remains a going concern and the work do not suffer. It will make payment of salary and wages to the officers, employees and workmen of the ‘Corporate Debtor’ and also to the suppliers of goods, services, electricity charges, water charges etc. Appeal disposed off.
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