The assets of the Corporate Debtor forms part of valuation of the liquidation proceedings and the auction and sale of assets of the Corporate debtor during moratorium is against the spirit of the Code – Supriyo Kumar Chaudhary Liquidator of JVL Agro Industries Ltd. Vs. Sub-Divisional Officer, Office of Deputy District Collector & Ors – NCLT Allahabad Bench
The Adjudicating Authority observed that in the present case, moratorium has already been imposed by this Adjudicating Authority when CIRP was initiated on 25.04.2018 and thereafter liquidation order was passed and moratorium under Section 33(5) of the Code was attracted. It is to be noted that in view of the provisions of the Code, the Respondents should not have proceeded with the auction of the property of the Corporate debtor, once the proceedings under the IBC had commenced and an order declaring moratorium was passed. We are of the view that the assets of the Corporate Debtor/Applicant forms part of valuation of the liquidation proceedings and the auction and sale of assets of the Corporate debtor during moratorium is against the spirit of the Code.
