Whether Adjudicating Authority, under its residuary power contained in Section 60(5)(c) of the IBC, entertain the plea of legality or otherwise of the assignment of debt? – Prudent ARC Ltd. Vs. Indu Techzone Pvt. Ltd. – NCLT Hyderabad Bench
March 10, 2022
The Adjudicating Authority holds that a mere look at the clause 5(b) of section 60 of Code, manifestly state that in order to exercise the residuary power as above, any question of priorities or any question of law or facts, should arise out of or in relation to the insolvency resolution or liquidation proceedings of the corporate debtor or corporate person under this Code. Thus, the sine qua non, for exercising the residuary power being, the 'question' must arise either out of or in relation to corporate debtor or corporate person , it is to be seen whether the above plea of the corporate debtor satisfies this test