Whether the Liquidator is competent to determine and admit a specific amount of money as payable to a particular creditor, when there is pending litigation before the appropriate forum, such as the DRT/High Courts and other Judicial Authorities – Mr. Ashok Oswal, Managing Director (Suspended) Oswal Spinning and Weaving Mills Ltd. Vs. Hemanshu Jetley (Liquidator) – NCLT Chandigarh Bench
The Adjudicating Authority held that the Liquidator is required to verify the claims with reference to the date of liquidation and if there is no crystallization of a debt through a decree on that date, the Code does not direct the Liquidator to wait for the same. The Applicant contented that proceedings before DRT need to be completed before the distribution under the IBC can take place, it is clarified that the general principle of construction in a circumstance where two special Acts are in conflict with each other is that, the Act made later should prevail vide the maxim “leges posteriores priores abrogant”. In view of Section 238 of the Code, 2016 steps taken under the Code by the authority would have precedence over other authorities in parallel proceedings. Thus, the provisions of Code, 2016 should prevail in case of any conflict. his Authority, therefore, finds no reason to keep the liquidation proceeding in abeyance, and thus, rejects the Applicant’s prayer that the Liquidator should await the final adjudication of the claims before the Hon’ble DRT before accepting the claims of the Respondents and subsequently disbursal of the amounts.
