#Liquidation Proceedings

NCLAT Chennai upholds liquidation under Section 33(1)(a) of the IBC, ruling that repeated failure to honor settlement proposals and non-cooperation with the Committee of Creditors (CoC) justifies bypassing resolution efforts. The judgment reinforces that liquidation is a last resort but becomes binding when promoters undermine the Corporate Insolvency Resolution Process (CIRP).

NCLAT upholds liquidation of a corporate debtor after the resolution applicant failed to secure RBI approvals within the one-year deadline under Section 31(4) of the Insolvency and Bankruptcy Code. The ruling reinforces strict compliance with regulatory timelines, impacting insolvency practitioners and creditors in CIRP proceedings.

The NCLAT has ruled that corporate insolvency resolution proceedings can proceed concurrently against both the principal borrower and its corporate guarantor, even when liquidation has been ordered against the guarantor. This clarifies that Section 12A of the IBC cannot be invoked to halt liquidation after resolution failure, reinforcing creditor rights and closing a key loophole in multi-debtor insolvency cases.