NEW DELHI: Only the Committee of Creditors (COC) has the authority to appoint a liquidator for a debt-ridden company undergoing insolvency procedure, and not the NCLT, in cases where a Resolution Professional has not submitted a written consent, the appellate tribunal NCLAT has said.
Passing a common order in two identical matters, where the National Company Law Tribunal (NCLT) had itself appointed liquidators of two insolvency-bound companies, the appellate tribunal set aside those appointments, observing “only CoC has the authority to select the candidate for replacing the RP”.
The National Company Law Appellate Tribunal (NCLAT) said…