In a recent case, the Madras High Court ruled that the petitioner company need not undergo the process of giving reply to the impugned show cause notices since, in any case, it is going to result only in launching of a prosecution against the petitioner company and its new management. It was observed that the interpretation of “going concern sale” under Regulation 32 of the Liquidation Process Regulations must align with section .53 of Insolvency Bankruptcy Code(IBC), 2016.
Winwind Power Energy Private, the petitioner challenged the show cause notices issued by the first respondent alleging violation of certain provisions of the Companies Act, 2013 (the Act) and the intended prosecution that was sought to be launched against…