There is no provision under IBC 2016 to come out of the Liquidation Process once a liquidation is ordered – Jayashree Mohan Erstwhile Director of Corporate Debtor Vs. Pathukasahasram Raghunathan Raman Liquidator M/s. RA-NI Precast Pvt. Ltd. – NCLT Chennai Bench
The Adjudicating Authority held that the provisions of the IBC, 2016 treat CIRP and Liquidation Process as two separate stages and the procedures to be followed in each stage have been delineated by way of framing a separate regulation by the regulator. There is no provision under IBC 2016 to come out of the liquidation process once a liquidation is ordered, except by way of a Scheme under Section 230 of the Companies Act, 2013 or by Sale as a going concern and the provisions of IBC never envisaged for termination of liquidation process and as such the prayer sought by the Applicant transcends beyond the scope of IBC.