In a recent judgment, the National Company Law Appellate Tribunal (NCLAT) overturned an order by the National Company Law Tribunal (NCLT), Chandigarh Bench, directing Punjab National Bank (PNB) to refund ₹4.50 crore to the liquidation estate of Vegan Colloids Ltd. The ruling reinforces the primacy of the Insolvency and Bankruptcy Code (IBC), 2016, in ensuring equitable distribution of assets during liquidation.
Case Background
Vegan Colloids Ltd., a corporate debtor, underwent Corporate Insolvency Resolution Process (CIRP) in 2017 after Bank of India filed a petition under Section 7 of the IBC. The process later transitioned to liquidation, with Mr. Anil Kohli appointed as the Liquidator. During liquidation, PNB filed…
