Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2020 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (8) TMI 494 - NATIONAL COMPANY LAW APPELLAE TRIBUNAL, NEW DELHILiquidation of Corporate Debtor - no ‘Resolution Plan’, is approved by the ‘Committee of Creditors’ - Section 33 of the I & B Code - HELD THAT:- It cannot be lost sight of that where no ‘Resolution Plan’, is approved by the ‘Committee of Creditors’, an Adjudicating Authority is bound to order ‘Liquidation’ of a Company. If the time prescribed under Sec 12 of the I & B Code had lapsed, an ‘Adjudicating Authority’ will pass an ‘Order of Liquidation’ against ‘Corporate Debtor’ regardless of whether the management of Corporate Debtor or the Resolution Applicant had enough opportunity to come up with viable/suitable Plan, as the case may be. Notwithstanding the fact that ‘Resolution of Corporate Insolvency’ is meant for survival of a Company as a Going Concern, it cannot be ignored that ‘Timely Liquidation’ is a palatable/desirable one too over an ‘Indefinite Resolution Proceedings’. When the ‘Committee of Creditors’ is of the view that no useful purpose will be served in continuing/elongating the Insolvency Resolution Process because of the fact that there was no ‘Resolution Plan’ to the satisfaction of the ‘Committee of Creditors’, then an ‘Adjudicating Authority’ is undoubtedly to pass necessary orders as per Sec 33(1)(a) and Sec 34(1) of the I & B Code for announcement of ‘Liquidation’ in respect of a ‘Corporate Debtor’. Section 240A of the Code to Micro, Small and Medium Enterprises - HELD THAT:- ‘Financial Creditor’ or an ‘Operational Creditor’ has a right to file necessary application for ‘Insolvency’. The creditors of Micro, Small and Medium Enterprises can take it to ‘Insolvency’. In fact, Sec 240A (2) of the Code confers power on the Central Government to direct by notification in ‘Public Interest’ that any of the provisions of I & B Code shall not apply to MSMEs or apply to them with such variations as may be mentioned in the notification. Appeal dismissed.
|