The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member) and Mr. Indevar Pandey (Technical Member) has held that when it becomes clear that revival is not a viable option, a decision taken by the CoC to liquidate the corporate debtor cannot be faulted.
Brief Facts:
Principal Borrower M/s Universal Textile Waterproof Company (India) (UTWC) was granted term loans and working capital facilities by SVC Cooperative Bank in which Shri Balaji Entertainments Pvt Ltd (corporate debtor) acted as a co-borrower and provided a corporate guarantee. An application under section 7 of the code was filed when the UTWC failed to repay the amount. Thereafter, the Adjudicating Authority…
