CoC is empowered to liquidate corporate debtor even after approval of Resolution Plan and laying it before NCLT: SC

Case Details: Gulabchand Jain v. Ramchandra D. Choudhary - [2021] 133 taxmann.com 208 (SC)

Judiciary and Counsel Details

• • Ajay Rastogi and Abhay S. Oka, JJ.
  • Rajesh Bohra, Ms. Zinnea Mehta, Ms. Kajal Bhatia, Advs. and Sudhansu Palo, AOR for the Appellant.

Facts of the Case

The NCLAT by an impugned order held that the Committee of Creditors (CoC) is empowered to take a decision regarding the liquidation of corporate debtor even after approval of Resolution Plan by the CoC and to lay it before the Adjudicating Authority for approval, subject to an only exception that such course cannot be adopted after its confirmation, i.e., after approval of Resolution Plan by the Adjudicating Authority. An appeal was filed before the Apex Court against the order of the NCLAT.

Supreme Court Held

Upholding the view taken by the NCLAT, the Apex court held that there was no reason to interfere with the impugned order passed by the NCLAT and dismissed the Appeal.

Case Review

• • Gulabchand Jain v. Ramchandra D. Choudhary, Resolution Professional of Vijay Timber Industries (P.) Ltd. [2021] 131 taxmann.com 149 (NCLAT-New Delhi) (para 2) affirmed.