On 1 June, the Kochi Bench of the National Company Law Tribunal (NCLT), held that suspended directors cannot institute or pursue proceedings in the name of a corporate debtor after commencement of liquidation and that authorities cannot reopen a concluded liquidation auction in the absence of fraud, collusion or material irregularity.
Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy imposed costs of Rs.1 lakh on the signatory to the application and directed its deposit with the National Defence Fund. The Bench held:
“In view of the aforesaid statutory provision, upon commencement of liquidation proceedings, the authority to represent the Corporate Debtor in legal proceedings vests exclusively with the…