NCLAT New Delhi: Objective Of IBC Is To Revive Corporate Debtor And Liquidation Is The Last Resort
Sachika Vij
5 Oct 2023 12:00 PM GMT
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, New Delhi comprising of Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra Dash (Technical Member), and Arun Baroka (Technical Member), allowed the appeals filed in Gayatri Polyrub Pvt. Ltd. vs. Anil Kohli & Anr.. The Tribunal setting aside the order dated 15.03.2023 held that the objective of the...
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, New Delhi comprising of Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra Dash (Technical Member), and Arun Baroka (Technical Member), allowed the appeals filed in Gayatri Polyrub Pvt. Ltd. vs. Anil Kohli & Anr..
The Tribunal setting aside the order dated 15.03.2023 held that the objective of the Insolvency and Bankruptcy Code is to revive the Corporate Debtor and Liquidation as the last resort in a well-settled law. It gave one opportunity to the CoC to consider the Revised Offer and take the decision to meet the ends of justice and extend the CIRP for a period of 60 days.
Background Facts:
The Appeals were filed by Mr. Harish Manocha and Gayatri Polyrubs Pvt. Ltd. against the order dated 15.03.2023 by which application for liquidation filed by Resolution Professional (‘RP’) was allowed without consideration to the higher offer by the Appellants.
NCLAT Verdict:
The NCLAT set aside the order dated 15.03.2023 and reiterated that that the objective of the Insolvency and Bankruptcy Code is to revive the Corporate Debtor and Liquidation as the last resort in a well-settled law. It gave one opportunity to the CoC to consider the Revised Offer and take the decision to meet the ends of justice and extend the CIRP for a period of 60 days.
The Tribunal concluded that the CoC is to consider only Mr. Harish Manocha’s Revised Offer as the other Appellant Gayatri Polyrubs Pvt. Ltd. has not submitted its Revised Offer.
Case Title: Gayatri Polyrub Pvt. Ltd. vs. Anil Kohli & Anr.
Case No.: Company Appeal (AT) (Insolvency) No. 650 of 2023
