Compromise Doubtful, Only To Benefit Related Parties, NCLAT Delhi Upholds Liquidation Of CD
Live LawThe National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Ashok Bhushan, Dr. Alok Srivastava and Mr. Barun Mitra, while adjudicating an appeal filed in Bankey Bihari Infrahomes Pvt. Ltd. v Mr. Alok Kumar Kuchchal & Anr., has upheld the Adjudicating Authority's decision to proceed with liquidation of Corporate Debtor as the Scheme of Compromise & Arrangement submitted by the Appellant appeared to be doubtful and ostensibly to appropriate the land to the benefit of related parties of the Corporate Debtor. Subsequently, an order for liquidation of Corporate Debtor was passed by the Adjudicating Authority on 31.01.2022 and Mr. Alok Kumar Kuchchal was appointed as the Liquidator. The Adjudicating Authority vide an order dated 13.04.2022 disposed off the application while observing that, "The liquidator is expected to act in accordance with the Liquidation Process Regulations. After expiry of the three weeks' time granted by Adjudicating Authority, the Liquidator published auction notice on 20.05.2022 for sale of Corporate Debtor's land.