The Madras High Court on 10 August held that the pendency of insolvency proceedings against a chit company does not prevent its Liquidator from taking steps under the Chit Funds Act, 1982 to recover amounts due to the company.
Justice D. Bharatha Chakravarthy directed the Economic Offences Wing (EOW) to furnish the Liquidator of Thiripura Chits Private Limited with a complete set of investigation materials so that he could initiate recovery proceedings under the Chit Funds Act. The Bench observed:
“There is nothing illegal in the Liquidator taking expeditious steps to collect the receivables. In fact, it is the duty of the Liquidator, when appointed under the relevant provisions of the IBC, to take appropriate steps to recover of…