Once a property is part of liquidation estate of Corporate Debtor under liquidation, the provisions of IBC are applicable regarding the assets which were in the ownership of the Corporate Debtor and Section 238 of the IBC prohibited the applicability of any other law which was inconsistent with the IBC – Adinath Jewellery Exports Vs. Mr. Brijendra Kumar Mishra, Liquidator of Shrenuj & Co. Ltd. – NCLAT New Delhi
NCLAT held that once a property was part of the liquidation state of the Corporate Debtor under liquidation, the provisions of IBC were applicable regarding the assets which were in the ownership of the Corporate Debtor and Section-238 of the IBC prohibited the applicability of any other law which was inconsistent with the IBC. The residuary jurisdiction is relevant during the CIRP when the insolvency resolution of the corporate debtor is taking place, whereas in the present case the liquidation of the corporate debtor is being considered and the liquidator has taken recourse to its powers under section 33(5) to get control and custody of the asset of the corporate debtor.
