The National Company Law Tribunal (NCLT), Delhi, has ordered liquidation of Stargaze Entertainment Pvt. Ltd., a cinema exhibition company, after rejecting a resolution plan. The Tribunal held that the Corporate Insolvency Resolution Process (CIRP) was itself vitiated because the Resolution Professional failed to take control of the company’s assets.
The bench of Judicial Member Ashok Kumar Bhardwaj and Technical Member Atul Chaturvedi observed,
“We also fail to appreciate that how without taking control of the assets of the CD, the RP could take steps under Regulation 36A of IBBI (CIRP) Regulations, 2016. It is also not understood that how the RP could prepare the Information Memorandum (IM) in terms of the provisions of Section 29 of…