A company can run usual operations or as a going concern even if it is in the process of being wound up in an administered sale, said a recent order by a bankruptcy appeals court, boosting recovery prospects for lenders that want to maximise value on soured loans.
The principal bench in New Delhi comprising two judges Anant Bijay Singh and Shreesha Merla – has shot down an earlier order by the National Company Law Tribunal (NCLT).
As to the going concern concept, the CIRP (Corporate Insolvency Resolution Plan) and CoC (Committee of Creditors) will put their maximum efforts to derive maximum value from the corporate debtor, said the National Company Law Appellate Tribunal (NCLAT).
The order was passed on Tuesday in the case of M/s Mohan Ge…
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