Can NCLT grants post-facto approval to Liquidator under IBC to initiate legal proceeding on behalf of Corporate Debtor?
The National Company Law Tribunal, Cuttack has granted post-facto approval in terms of Section 33(5) of Insolvency & Bankruptcy Code, 2016 to a Liquidator for initiation of a legal proceeding on behalf of the corporate debtor.
NCLT Observed that:
The Liquidator also could have taken steps at that stage to obtain necessary permission for filing the appeal. However, it is the fact that Liquidator failed to do so.
In view of the foregoing judgment, and in the interest of justice, keeping in mind the spirit of IBC, focus of the company in liquidation is to "maximisation of the asset". This application is allowed.
Ravi Shankar Devarakonda, Liquidator of Coastal Projects Ltd. and Ors. vs. Bharat Heavy Electricals Ltd. and Ors. (16.01.2020 - NCLT - Cuttack) : MANU/NC/0010/2020