Liquidator have power to replace or remove the Nominee Directors of the Corporate Debtor on the board of other Companies- Rajive Kaul Vs. Vinod Kumar Kothari & ors – NCLAT
NCLAT held that it is an axiomatic principle in Law that a Company in liquidation acts through the ‘Liquidator’ and the ‘Liquidator’ steps into the shoes in the Board of the Directors of the Company under Liquidation for the purpose of discharging is statutory duties. In reality, the property of the Company forming part of Liquidation still remain vested in the Company. Further it is held that the Liquidator is armed with requisite powers to remove the ‘Nominee Directors’ (Rajive Kaul & Pallavi Priyadarshini Kaul) and is entitled to nominate the ‘Directors’ and the Appellant ‘Nicco Park and Resorts Pvt. Ltd.’ is enjoined to act upon the replacement proposal of the ‘Existing Nominee Directors’ of ‘Corporate Debtor’.
