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2020 (3) TMI 1057 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with rule 11 of the National Company Law Tribunal Rules, 2016 - can this Adjudicating Authority ratify the Act of the liquidator subsequently, when the Act has specifically said that "prior approval" is must. And if so at what stage the de facto approval can be sanctioned and the effect of the same on the already filed suit/application? HELD THAT:- What ought to be done, if the parties failed to do. It cannot be ratified by the subsequent Act. However, the petitioner counsels vehemently argued that sanction of approval is only a formal Act. Hence, in the interest of justice and the overall view of the enactment for maximisation of the value of the assets of the corporate debtor. An approval will only amount to regularisation of appeal already filed and pending. It is only a formality to regularise the application which was filed before the District Court - The permission to go on appeal against the company under liquidation was obtained by the respondent herein and this Adjudicating Authority by order dated April 8, 2019 has given approval to the respondent to file appeal against the corporate debtor against the award passed by the hon'ble sole arbitrator. Thus, in the interest of justice, keeping in mind the spirit of the IBC, focus of the company in liquidation is to "maximisation of the asset" - the application is allowed.
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