IBC’s Objective to Revive Corporate Debtor and Liquidation Last Resort: NCLAT

IBC’s Objective to Revive Corporate Debtor and Liquidation Last Resort: NCLAT

The tribunal directs the CoC to extend the Corporate Insolvency Resolution Process for 60 days

The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) has held that the objective of the Insolvency and Bankruptcy Code (IBC) to revive the Corporate Debtor and liquidation was the last resort in a well-settled law.

While setting aside the 15 March 2023 order, the bench comprising Justice Ashok Bhushan (Chairperson), Barun Mitra Dash (Technical Member), and Arun Baroka (Technical Member), allowed the appeals filed in the Gayatri Polyrub Pvt. Ltd. vs. Anil Kohli & Anr case.

The tribunal provided an opportunity for the CoC to consider the revised offer and meet the ends of justice by extending the Corporate Insolvency Resolution Process (CIRP) for 60 days.

Harish Manocha and Gayatri Polyrubs had filed an appeal against the order by which the application for liquidation filed by the Resolution Professional (RP) was allowed without consideration of the appellants’ higher offer.

Thus, while setting aside the order, the tribunal reiterated that the objective of the IBC was to revive the corporate debtor and liquidation as the last resort. It directed the CoC to consider Harish Manocha’s revised offer, as the other appellant, Gayatri Polyrub did not submit its revised offer.