The Mumbai Bench of the National Company Law Tribunal (NCLT) has held that the pendency of avoidance transaction proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) cannot obstruct the liquidation of a corporate debtor once the Committee of Creditors (CoC) has in its commercial wisdom resolved to liquidate the company under Section 33(2) of the Code.
The corporate debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on June 6, 2023. Following the public announcement claims were received from financial and operational creditors and the Committee of Creditors was constituted with Gajendra Investment Limited as its sole member. Subsequently, PCS Vaishali Patrikar was appointed as the…