Whether Adjudicating Authority have power to play duel role, one as the Adjudicating Authority in the matter of liquidation and other as a Tribunal for passing order u/s 230 of the Companies Act, 2013- Y. Shivram Prasad Vs. S. Dhanapal & Ors.-NCLAT
During proceeding under Section 230, if any, objection is raised, it is open to the Adjudicating Authority (NCLT) which has power to pass order under Section 230 to overrule the objections, if the arrangement and scheme is beneficial for revival of the Corporate Debtor (Company). While passing such order, the Adjudicating Authority is to play dual role, one as the Adjudicating Authority in the matter of liquidation and other as a Tribunal for passing order under Section 230 of the Companies Act, 2013. As the liquidation so taken up under the Code, the arrangement of scheme should be in consonance with the statement and object of the Code. Meaning thereby, the scheme must ensure maximisation of the assets of the Corporate Debtor and balance the stakeholders such as, the Financial Creditors, Operational Creditors, Secured Creditors and Unsecured Creditors without any discrimination.
