Liquidation of the Corporate Debtor - Validity of decision of ...

Liquidation Order Challenged: Procedural Flaws in CoC Meetings Overlooked, Violating Section 61(4) of Statute.

September 3, 2022

Case Laws Insolvency and Bankruptcy AT

Liquidation of the Corporate Debtor - Validity of decision of Committee of Creditors - It is true that under the statute CoC is empowered to take a decision to liquidate the Corporate Debtor. Material irregularity has been committed in the process - the sufficient ground exist within the meaning of Section 61(4) to assail the order directing for liquidation. The Adjudicating Authority in the impugned order only relying on the resolution of the CoC in 5th meeting has directed for liquidation without even taking into consideration minutes of subsequent 6th, 7th and 8th meetings of CoC, the steps taken by CoC to invite plan from the Appellant, discussion of the plan and ultimately decision thereon. - AT

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Liquidation of the Corporate Debtor - Validity of decision of ...

Liquidation Order Challenged: Procedural Flaws in CoC Meetings Overlooked, Violating Section 61(4) of Statute.

September 3, 2022

Case Laws Insolvency and Bankruptcy AT

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