In a recent ruling, the New Delhi bench of the National Company Law Appellate Tribunal (NCLAT) has held that an appeal under section 61 of the IBC cannot be entertained after the dissolution of the corporate debtor under section 54 of the Insolvency Bankruptcy code(IBC), 2016.
The appellant, New India Color Company Ltd., contested the National Company Law Tribunal’s (the “Tribunal”) order dated 14.09.2022, which dismissed the appellant’s interlocutory application filed in Company Petition No. (IB) – 908/ND/2020 under Section 60(5) r/w Section 73 of the Insolvency & Bankruptcy Code, 2016 (the “Code”). Even though the Corporate Debtor was dissolved under Section 54 of the Code, the appellant argued that they might still apply to the Tribunal under Section 66 of the Code or Section 231 of the Companies Act, 2013.
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In Sudhir Kumar Goel & Ors. Vs. M/s Shashi Oils and Fats Pvt. Ltd. & Anr. (2022), the NCLAT ruled that “the role of this Appellate Tribunal is also restricted within the four walls of the ‘Code’ & passing of order under Section 54 of the Code brings the Corporate Debtor to a closed chapter.” The respondent cited this ruling.
The bench of Justice Rakesh Kumar Jain ( Judicial Member ) and Mr. Naresh Salecha ( Technical Member ) held that since the corporate debtor has already been dissolved by an order passed by the Adjudicating Authority under section 54 of the code, the present appeal has become infructuous and dismissed the same.
It was held that the Appellant may have recourse to address its grievance before any forum in accordance with law but it does not mean that any liberty has been given by the court.
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