TMI BlogNavigating Insolvency Proceedings: Understanding CoC's Role and Section 65 of IBC in Corporate LiquidationX X X X Extracts X X X X X X X X Extracts X X X X ..... LLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI The case, as documented in the judgment 2024 (1) TMI 896, provides a fascinating study of the complexities involved in insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). This case commentary delves into the various legal issues raised, the interpretation of IBC provisions, and the implications of the National Company Law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appointed an Interim Resolution Professional (IRP), and imposed a moratorium. The IRP discovered that the Corporate Debtor's office had been closed for over a year, and its directors had resigned. The secured financial creditors had initiated enforcement actions under the SARFAESI Act 2002. Legal Issues and Analysis 1. Liquidation Decision by CoC The CoC, after several m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me before the confirmation of a resolution plan. They cited the Sunil S. Kakkad case, which upheld the CoC's power to liquidate before confirming a resolution plan. 4. Section 65 Concerns The appellants contested the invocation of Section 65 , arguing that the proceedings were initiated for liquidation, not with malicious intent or for purposes other than liquidation. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T allowed the appeal, setting aside the impugned order of the Adjudicating Authority. This decision underscores the autonomy of the CoC in deciding the fate of a Corporate Debtor under the IBC and clarifies the applicability of Section 65 of the IBC in the context of liquidation proceedings. Full Text : 2024 (1) TMI 896 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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