Disclaimer

This website is only for informational purposes. Visitors are requested to note that the information is intended to be correct, complete, and up-to-date. Juris Corp does not warrant that the information contained on this website is accurate or complete, and disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.

This website is not intended to be a source of advertising or solicitation. The reader must not consider the information contained herein to be an invitation for a lawyer-client relationship, must not rely on information provided herein and must seek independent advice. Transmission, receipt or use of any information on this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act or refrain from acting, based upon any or all of the contents of this website.

Furthermore, Juris Corp does not wish to represent anyone desiring representation based solely upon viewing this web site. Finally, the reader is warned that the use of e-mail for confidential or sensitive information is susceptible to inherent risks of lack of confidentiality associated with sending e-mail over the internet.

By clicking on the "I understand and agree" button below, the user acknowledges that:

  • This website is not a mode of advertisement, promotion, personal communication, or solicitation of any sort whatsoever and the user wishes to gain information about us for his/her own reasons;
  • Entering into this website does not establish a lawyer-client relationship.

We are not liable for any consequence of any action taken by the user relying on information provided under this website. In cases where the user has any legal issues, he/she must seek independent legal advice.

JC - Legal Updates - Liquidator can seek closure of the Liquidation Process to sell CD as a going concern – NCLAT

Legal Updates

01 Sep 2021

Liquidator can seek closure of the Liquidation Process to sell CD as a going concern – NCLAT

The Hon’ble NCLAT has dealt with the issue whether the Liquidator is authorized to seek for the closure of the Liquidation Process and sell the ‘Corporate Debtor’ as a going concern pursuant to Regulation 32 of IBBI (Liquidation Process) Regulations, 2016 (Regulation).

It has been held by the Hon’ble NCLAT vide judgement dated 24th August 2021, in the matter of “M/s Mohan Gems & Jewels Private Limited Vs. Vijay Verma & Anr.’’ that the Insolvency and Bankruptcy Code, 2016 (“the Code”), does not prevent the closure of Liquidation Process, and the Liquidator would be authorised to sell the Corporate Debtor as a going concern.

The Hon’ble NCLAT has further observed that;-

1.    If the Liquidator, in terms of Regulation 32A is of the opinion that the sale under Regulation 32 (e) or (f) shall maximize the value of the Corporate Debtor he shall endeavour to sell; and

2.    the closure of Liquidation Proceedings can be done/carried out and dissolution of Corporate Debtor is not the only prospect provided for under liquidation by the Code.

https://ibbi.gov.in//uploads/order/ed29b92ace06f136a9060e3964e27ad8.pdf

For any further information, please contact Mr. Shubhabrata Chakraborti (shubhabrata.chakraborti@jclex.com) or Mr. Dhruv Malik (dhruv.malik@jclex.com).