03/07/2020

If Corporate Debtor is an MSME, even if the promoters/directors have been declared as wilful defaulters, they can apply under the provisions of Section 230 of the Companies Act, 2013 as they are exempted from Section 29A of IBC, 2016 – Ravindranath Narayana Rao Vs. Maruthanayagam Kathiresh – NCLT Chennai

NCLT held that since the Corporate Debtor is an MSME, even if the promoters- directors have been declared as ‘wilful defaulters’, they can apply under the provisions of Section 230 of the Companies Act, 2013 as they are exempted from Section 29A of IBC, 2016. Even after the declaration of initiation of liquidation proceedings, the promoters- directors still have a chance to tender definite plan for taking over the  company as a going concern or under the provisions of Section 230 of the Companies Act, 2013. The Regulation 2B of the IBBI (Liquidation Process) Regulations, 2016 contemplates that a period of 90 days has to be provided for completion of a Scheme of compromise or arrangement from the date of the order of liquidation, during which period the prospective Resolution Applicant can very well submit his Scheme under Section 230 of the Companies Act, 2013.

If Corporate Debtor is an MSME, even if the promoters/directors have been declared as wilful defaulters, they can apply under the provisions of Section 230 of the Companies Act, 2013 as they are exempted from Section 29A of IBC, 2016 – Ravindranath Narayana Rao Vs. Maruthanayagam Kathiresh – NCLT Chennai Read Post »

Liquidator is entitled to claim exclusion of period of lockdown imposed by the Central Government in wake of Covid – 19 outbreak, as adumbrated in Regulation 47A of Liquidation Process Regulations, if it applies to the facts and circumstances – CA Mahalingam Suresh Kumar Liquidator of M/s Nag Yang Shoes Pvt. Ltd. – NCLT Chennai

NCLT by taking into consideration all the facts mentioned above, feels that it is just and proper to extend the Liquidation period for a further period of one year from 06.04.2020 and in the said circumstances, the Liquidation period of the Corporate Debtor stands extended for a further period Of one year from 06.04.2020 and the Liquidator shall make every endeavour to complete the liquidation process within the extended period of one year and not to seek for any further extension. It is needless to mention here that the Applicant / Liquidator is entitled to claim exclusion of period of lockdown imposed by the Central Government in wake of Covid – 19 outbreak, as adumbrated in Regulation 47A of IBBI Insolvency and Bankruptcy Board Of India (Liquidation Process) Regulations, 2016, if it applies to the facts and circumstances. The Liquidator in view of the extension granted as above, is directed to abide by the model timelines as prescribed by IBBI in Insolvency and Bankruptcy Board Of India (Liquidation Process) Regulations, 2016 and thereby complete the process in all earnest and in accordance with the said Regulations including filing of reports as required, with this Tribunal. Accordingly, IA/421/2020 stands allowed on aforementioned terms.

Liquidator is entitled to claim exclusion of period of lockdown imposed by the Central Government in wake of Covid – 19 outbreak, as adumbrated in Regulation 47A of Liquidation Process Regulations, if it applies to the facts and circumstances – CA Mahalingam Suresh Kumar Liquidator of M/s Nag Yang Shoes Pvt. Ltd. – NCLT Chennai Read Post »

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