Following the award, BHEL, which is also one of the secured creditors, refused to give its consent for liquidation as it would have resulted in it getting lesser share according to IBCs waterfall mechanism.
The National Company Law Appellate Tribunal (NCLAT) has held that the liquidation process of a company under the Insolvency and Bankruptcy Code (IBC) holds precedence over outcome of an arbitration proceeding, and therefore process under IBC shall not be stopped.
In its judgment, a three-member Bench of NCLAT held that Bharat Heavy Electricals Limiteds (BHEL) objections to liquidation of Tamil Nadu-based Surana Power were not valid as majority of sec…
Read the full article at: https://indianexpress.com/article/business/companies/nclat-overrules-bhel-objections-gives-nod-to-surana-power-liquidation-6467193/
