Suspended Director of Corporate Debtor cannot challenge liquidation order on the mere fact that only one Financial Creditor in CoC – Vishal Harish Choudhary (Suspended Director of Corporate Debtor) Vs. Arihant Nenawati Liquidator of M/s Royal Refinery Private Ltd. – NCLAT New Delhi
CoC took view that sale of the Corporate Debtor is not possible as it is not a going concern and decided that sale of Corporate Debtor cannot be done as a going concern and by 100% voting share of the CoC resolution for liquidation was approved. The IRP then filed application as per provisions of Section 33 of the Code, which has been allowed by the impugned order.
NCLAT has held that the mere fact that CoC is constituent of only one Financial Creditor which has 100% voting share cannot be said to be a ground on which the Appellant can question order of liquidation. Decision for liquidation has been taken with 100% voting share of the Financial Creditor as has been noted by the Adjudicating Authority. Further, the submission of the Appellant that the Suspended Directors were entitled to given opportunity by the Adjudicating Authority before passing the order of liquidation has also no substance. The Adjudicating Authority passed the order on the Application of the Resolution Professional after hearing the Financial Creditor. The Appeal is dismissed.
