In its recent decision on the autonomy of stakeholders in a voluntary liquidation process, the National Company Law Appellate Tribunal (NCLAT) decisively settled the scope of judicial intervention under Section 59 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Ld. Appellate Tribunal held that once a corporate debtor has lawfully replaced a voluntary liquidator through a board resolution and shareholder approval under Regulation 5 of the IBBI (Voluntary Liquidation Process) Regulations, 2017, the Adjudicating Authority (NCLT) cannot impose a status quo order to retain the ousted liquidator.
The appeal stemmed from a challenge to an interim order passed by the NCLT, which directed the corporate debtor to maintain the existing…
Insolvency Guardian
Insolvency Services & Bankruptcy Advice
