2022 (3) TMI 1446 - SC - Insolvency and Bankruptcy

Payments disbursed by the Liquidator - undertaking has been taken by the Liquidator that the banks would return the money if they are not entitled, in accordance with Regulation 43 of the IBBI (Liquidation Process) Regulations 2016 - HELD THAT - Both in view of the findings which have been arrived at by the NCLAT, and the assurance which has been given to the Court by the Liquidator, it is not necessary to entertain the Appeal. The Appeal is accordingly dismissed.

Summary

Issues:
1. Observations made by the National Company Law Appellate Tribunal regarding payments disbursed by the Liquidator to nationalized public sector banks.
2. Undertaking by the Liquidator for the return of money by banks if not entitled.
3. Statement by senior counsel regarding the corporate debtor being conducted as a going concern.
4. Dismissal of the Appeal based on NCLAT findings and assurance by the Liquidator.
5. Disposal of pending application.

Analysis:
The National Company Law Appellate Tribunal (NCLAT) made specific observations regarding the payments disbursed by the Liquidator to five nationalized public sector banks, including Central Bank of India, Corporation Bank of India, UCO Bank, United Bank of India, and Indian Overseas Bank. An undertaking was provided by the Liquidator, ensuring that the banks would refund the money if found ineligible, as per Regulation 43 of the IBBI (Liquidation Process) Regulations 2016.

During the proceedings, Mr. Ritin Rai, senior counsel representing the Liquidator, affirmed that the corporate debtor is being managed as a going concern, emphasizing that no actions detrimental to its status as a going concern would be taken. Considering the findings of the NCLAT and the assurance given by the Liquidator to the Court, it was deemed unnecessary to proceed with the Appeal. Consequently, the Appeal was dismissed, and any pending application was disposed of as per the judgment.