NCLT Chandigarh mandated liquidation of a corporate debtor after the Committee of Creditors dismissed the sole resolution plan proposed during CIRP.
NCLT Orders Liquidation Following CoC Rejection
The National Company Law Tribunal (NCLT) at Chandigarh has ordered the liquidation of a corporate debtor after the Committee of Creditors (CoC) rejected the only resolution plan submitted during the Corporate Insolvency Resolution Process (CIRP). The Tribunal concluded that the conditions outlined in Section 33 of the Insolvency and Bankruptcy Code were met, warranting liquidation.
The ruling underscores the authoritative power of the CoC in determining the fate of resolution plans and the significance of adhering to statutory timelines and obligations during insolvency proceedings. The NCLT emphasized that the decision to liquidate arises from statutory necessity in circumstances where no viable resolution plan is available.
This development serves as a critical reminder for insolvency professionals to diligently prepare and present resolution plans, actively engaging with the CoC to avoid liquidation outcomes.
Citations
- N/A
