If it would not serve any purpose to keep Corporate Debtor under CIRP proceedings and thereafter under Liquidation proceedings, Adjudicating Authority by exercising its inherent powers conferred under the IBC read with NCLT Rule 11 may allow early/direct dissolution of Corporate Debtor – Ms. Naresh Kumar Munjal RP of Corporate Debtor Vs. Laksh Foods Pvt. Ltd. and Anr. – NCLT New Delhi Bench
April 22, 2024
Hon’ble NCLT New Delhi Bench referring judgment in Mr. Mandar Wagh, IRP of M/s. Synew Steel Pvt. Ltd. (2020) ibclaw.in 171 NCLT (Bengaluru Bench), Air Pegasus Pvt. Ltd. (2020) ibclaw.in 441 NCLT and Shyson Thomas vs. Mr. Madhugiri Venkatarayappa Sudarshan (2023) ibclaw.in 366 NCLAT held that the ultimate objective of Code is either to resolve the insolvency by way of Resolution Plan or to dissolve the Corporate Debtor, as expeditiously as possible so as to maximize the value of the assets. If the facts and circumstances of a case, justify, that it would not serve any purpose to keep the Corporate Debtor under regular CIRP proceedings, and thereafter under Liquidation proceedings, under the provisions of Code, the Adjudicating Authority, by exercising its inherent powers conferred under the Code read with Rule 11 of the NCLT, Rules, 2016, may pass appropriate order(s) in the interest of speedy justice.
