The National Company Law Tribunal (NCLT), has held that liquidation cannot be permitted where it would effectively benefit defaulting promoters who continue to operate outside the formal structure of the corporate debtor, and consequently recalled the insolvency admission order
The RP submitted that despite extensive efforts following his appointment, he was unable to obtain crucial financial records, establish control over assets or secure cooperation from the suspended management and promoters. He informed the Tribunal that the promoters remained untraceable and had allegedly concealed assets and operational information. The RP also pointed out that several schools continued to operate under the corporate debtor’s …