A public announcement is required to be made immediately within 3 days from the date of appointment. However, the Regulation does not provide that in case the announcement is made after three days, it will become nullity – M/s Mantena Laboratories Ltd. Vs. Union of India – Telangana High Court
Hon’ble High Court held that this Court has carefully gone through the Insolvency and Bankruptcy Code, 2016 and the Regulations framed thereunder. It is true that a public announcement is required to be made immediately within three days from the date of appointment. However, the Regulation does not provide that in case the announcement is made after three days, it will become nullity. Section 60(5)(c) provides for an appeal in case of any question of priorities or any question of law or facts, arising out of or in relation to the insolvency resolution or liquidation proceedings. Therefore, there is an efficacious alternative remedy available to the petitioners to prefer an appeal.
