NCLAT has upheld the extension of liquidation proceedings, confirming that the trustee may continue their responsibilities beyond the age limit provided by Regulation 7A. The appeals against this extension were dismissed.
NCLAT Dismisses Appeals Against Liquidation Extension
The National Company Law Appellate Tribunal (NCLAT) has dismissed appeals challenging the extension of liquidation proceedings. The Tribunal validated the extension, which was approved by the Stakeholders’ Consultation Committee (SCC), as being within legal parameters.
Moreover, the Tribunal upheld the continuation of a trustee's role beyond the stipulated age of 70 under Regulation 7A’s proviso, asserting that such an extension does not violate any statutory framework governing insolvency processes.
This decision provides critical clarity regarding the extension of liquidation periods and the eligibility of trustees in such scenarios, offering practitioners insight into the maintenance of continuity in insolvency resolutions even when age-based restrictions are imposed.
Citations
- NCLAT Order (2026)
