Doctrine of necessity invoked to grant opportunity to deposit ...

Doctrine of necessity invoked to grant chance to deposit balance & avoid liquidation, enabling Corporate Debtor revival.

Case Laws     Insolvency and Bankruptcy

July 26, 2024

Doctrine of necessity invoked to grant opportunity to deposit balance amount into liquidation account to avoid liquidation and enable Corporate Debtor to revive as going concern. Section 60(5) of Insolvency and Bankruptcy Code, 2016 empowers Tribunal to pass appropriate order to meet Code's objective despite contrary provisions. Appellant granted last chance to deposit amount within one month, failing which relaxation lapses and liquidator can seek alternate buyer as per law. Appeal disposed of.

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