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Clean Slate Principle envisaged under IBC is also binding on Equity Shareholders | After approval of Resolution Plan, Share Holder/Director/Former Director of Corporate Debtor has no locus to continue LPA, particularly when no leave of NCLT had been obtained to pursue LPA – Lalan Kumar Singh v. The Hongkong and Shanghai Banking Corporation Ltd. and Ors. – Himachal Pradesh High Court

Hon’ble High Court of Himachal Pradesh held that once approval of the Resolution Plan was granted by the NCLT and the Resolution Applicants have taken control of the Corporate Debtor, and the existing equity share capital of the Corporate Debtor stood written off in view of the Clean Slate Principle envisaged under the IBC, the said order is binding on the appellant as well. The appellant has no locus either as a Share Holder or as a Director or as a Former Director of the Corporate Debtor to continue this Letters Patent Appeal, particularly when no leave of the NCLT had been obtained to pursue this Letters patent Appeal by him.

Clean Slate Principle envisaged under IBC is also binding on Equity Shareholders | After approval of Resolution Plan, Share Holder/Director/Former Director of Corporate Debtor has no locus to continue LPA, particularly when no leave of NCLT had been obtained to pursue LPA – Lalan Kumar Singh v. The Hongkong and Shanghai Banking Corporation Ltd. and Ors. – Himachal Pradesh High Court Read Post »

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