Whether an ex-employee of the Corporate Debtor has any locus standi to file an application under Section 33(3) of the IBC for liquidating the Corporate Debtor when a Resolution Plan has already been approved by NCLT – N.P. Rajan Vs. Hindustan Newsprint Ltd. & 3 Others – NCLT Kochi Bench
February 21, 2022
The Tribunal holds that a liquidation proceeding shall be initiated only when the CIRP fails. Section 33 of the Insolvency and Bankruptcy Code, 2016 sets out the conditions laying down three scenarios wherein liquidation proceedings can be initiated against the Corporate Debtor. In a situation where a Resolution Applicant succeeds as Corporate Debtor but it fails to comply with its assurance in terms of the resolution plan, what step is to be taken has already been laid down in Sub-Section (3) of Section 33 of the I&B Code. We are of the considered opinion that the expression ‘person aggrieved’ does not include a person who suffers from a psychological or an imaginary injury; a person aggrieved must, therefore, necessarily be one, whose right or interest has been adversely affected or jeopardized.(