Liquidation is a time bound process and the Liquidator being made accountable is required to explain if there is any delay caused in the liquidation process – State of Tamil Nadu Vs. S. Rajendran, Liquidator of Daehsan Trading India Pvt. Ltd. and Anr. – NCLT Chennai Bench
Hon’ble NCLT Chennai Bench holds that:
(i) It is noted that the Applicant had filed its claim before the IRP during the CIRP of the Corporate Debtor. So it cannot feign ignorance for not filing the claim before the Liquidator. However, for the reasons best known to them, the Applicant did not file the claim before the Liquidator within the stipulated time period.
(ii) As per the waterfall mechanism stipulated under Section 53 of IBC, 2016, the Liquidator has distributed the amount to the stakeholders and has also filed an Application seeking dissolution of the Corporate Debtor.
(iii) Regulation 44(2) stipulates that, after the expiry of one year, the liquidator shall file an application to the Authority to continue the liquidation period along with a report and explain why the liquidation has not been completed.
(iv) There is no equity about limitation, unable to entertain this Appeal.
