DR. P. MAHALINGAM V. MUTHOOT FINCROP LIMITED
COURT: National Company Law Appellate Tribunal, Principal Bench: New Delhi
CORAM: Justice M. Venugopal
DATE OF JUDGMENT: 14 February 2022
In this case the appellant took an undertaking to pay an amount of 57.50 Crores to the M/s Muthoot Fincorp Ltd but has failed to do within the 60 days. Upon which the Committee of Creditors has taken a decision for liquidation of the company. The Adjudicating Authority NCLT, Chennai ordered the liquidation of the corporate debtors via order dated 4.12.19 and the legality and correctness of the impugned order has been challenged by the appellant. The appellant has argued that the given order completely negates the Spirit of the provisions of IBC, 2016 and hence, is bad in law.
Whether the order by the Adjudicating Authority is in contrast with the essence of the Insolvency and Bankruptcy Code?
The Company Appeal (AT)(Ins) No.146/2020 is dismissed without cost. The appellant argued that the Adjudicating Authority should make it so that corporate applicant be a going concern, which is of prime importance, without which the pending debts would possibly turn bad. The Appellate Tribunal said that the arguments raised by the appellant do not stand true to the actions taken by them. As there were hardly any operations being carried out by the appellant and hence, they can’t take a plea and take to be restored to a position of ‘going concern’.