The National Company Law Tribunal (NCLT), Kolkata Bench, has recently held that after the omission of the provisions permitting going-concern sales under the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, it cannot allow the sale of a corporate debtor as a going concern or as a continuing juristic entity during liquidation.
The ruling applies where the process for such a sale had not commenced before the amendments came into force.
A bench of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra was dealing with an application filed by the liquidator of Dooteriah & Kalej Valley Tea Private Limited. The liquidator sought permission to sell the company as a going concern. The proposed…