NISHANT
The essence of section 241/242 would be defeated if during the pendency of the petition, the operational or financial creditors are allowed to initiate the corporate insolvency resolution process itself.
NISHANT MEHROTRA 24 Oct 2019

The essence of section 241/242 would be defeated if during the pendency of the petition, the operational or financial creditors are allowed to initiate the corporate insolvency resolution process itself.

NCLAT :: Companies Act, 2013 - Sections 241 and 242 - Tribunal/Appellate Tribunal - Jurisdiction to interfere with Board's decision - The essence of section 241/242 would be defeated if during the pendency of the petition, the operational or financial creditors are allowed to initiate the corporate insolvency resolution process itself.


Held :: If the board of directors, on perusal of the record, finds that there is no money payable or receivable to pay to the operational creditor/ financial creditors to save it from initiation of the corporate insolvency resolution process, the Tribunal or Appellate Tribunal cannot go into commercial wisdom and financial matrix of the company to decide whether a particular asset or one or other asset is required to be sold to satisfy the liabilities of the company. If the salvation for the company is improving liquidity through sale of non-performing assets of the company, including the non-core assets that were proposed to be sold and servicing the territory, it is not open for the Tribunal or the Appellate Tribunal to prohibit the company from taking such decision.


Case:

Atlas Cycles (Haryana) Ltd. and Others

             V.

Mr. Vikram Kapur and Others

Did you find this write up useful? YES 2 NO 0
Mason Cooper   5 Oct 2023 10:58am
I saw testimonies online on how Dr Uwaifo helped a lot of people in winning Powerball. A huge amount, so I decided to contact him for winning lottery read more
Reply
Festus Marcus   6 Sep 2023 1:19am
An unidentified hacker moved my BTC wallet and all the funds in it after I disregarded a BTC security code I had received on my phone. I was frustrated read more
Reply
Queen Pookie   20 Jul 2023 6:21pm
I was scammed by an Instagram person faking a celebrity I talked with this scammer 8 months via WhatsApp and I sent money to them via Bitcoin then I was read more
Reply
Danielle Stones   12 Apr 2023 6:42pm
I was a victim of a Cryptocurrency Exchange called “UBS Cryptocurrency Exchange” probably based in Hong Kong, which is renamed as “CREDIT SUISSE Cryptocurrency read more
Reply
New Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com