The National Company Law Appellate Tribunal (NCLAT), Principal Bench, led by Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has dismissed an appeal against the National Company Law Tribunal’s (NCLT) Mumbai Bench order. The ruling emphasizes that a successful auction purchaser in the liquidation proceedings of a corporate debtor is entitled to specific reliefs and concessions, particularly in the context of a going concern sale.
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The Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor on 11.06.2018, instigated by Andhra Bank’s application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). Despite the Resolution Professional’s efforts, no approved Resolution Plan materialized. Subsequently, the promoters sought to withdraw the CIRP under Section 12A IBC. When unsuccessful, liquidation proceedings commenced, appointing Dr. Mamta Binani as the Liquidator.
This decision by the NCLAT underscores the importance of acknowledging and facilitating certain reliefs and concessions for auction purchasers in the liquidation process, particularly when it involves the preservation of a going concern.
