The NCLT has approved a ₹17.25 crore resolution plan, stating that statutory obligations cannot be waived due to COVID-19-related disturbances. This ruling addresses the challenges during CIRP amid financial uncertainties.
NCLT Approves ₹17.25 Crore Resolution Plan Amid COVID-19 Challenges
The National Company Law Tribunal (NCLT) has approved a ₹17.25 crore resolution plan, which includes a working capital infusion of ₹3 crore, despite objections raised by Canara Bank regarding delays caused by the COVID-19 pandemic. The tribunal clarified that disruptions due to the pandemic do not exempt parties from fulfilling their statutory obligations.
The order emphasized that taxes, stamp duties, and other statutory liabilities remain enforceable and must be pursued by the relevant authorities, notwithstanding the ongoing Corporate Insolvency Resolution Process (CIRP). This indicates the tribunal's commitment to ensuring that financial responsibilities are met even in times of crisis.
For practitioners in insolvency law, this ruling highlights the importance of compliance with statutory obligations and the challenges presented by external factors such as the COVID-19 pandemic. The decision reflects a balanced approach where urgent financial solutions are made available while maintaining adherence to the law.
Citations
- NCLT Case (2026) NCLT
