Adjudicating Authority Orders Payment of Overdue Amount to Expedite Liquidation Process The Adjudicating Authority directed the Respondent to pay the overdue amount of Rs. 19,57,637 along with interest within two weeks from the date of the ...
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Adjudicating Authority Orders Payment of Overdue Amount to Expedite Liquidation Process
The Adjudicating Authority directed the Respondent to pay the overdue amount of Rs. 19,57,637 along with interest within two weeks from the date of the order. The decision aimed to expedite the liquidation process due to the urgency and non-contestation by the Respondent, ensuring timely realization of dues and facilitating the liquidation without delay.
Issues: Liquidator seeking direction for overdue amount payment from Respondent under IBC, 2016.
Analysis: The Liquidator of the Corporate Debtor filed an application seeking a direction under Section 35 of IBC, 2016, for the Respondent to discharge the total overdue amount of Rs. 19,57,637 along with interest. The Liquidation of the Corporate Debtor was initiated earlier, and the Liquidator had undertaken various steps in the process, including issuing public announcements, filing reports, and attempting to sell the company as a Going Concern. Due to the Covid-19 pandemic, certain processes were delayed, and the Liquidator had to revive the hospital to treat Covid-19 patients. An agreement was entered into with the Municipality for hospital operations, but the Municipality failed to honor payment obligations, resulting in the overdue amount. Despite issuing a legal notice, the Respondent did not make the payment, leading to the current application.
The Adjudicating Authority noted that the Respondent did not contest the case, and the relief sought by the Liquidator appeared legitimate. Considering the urgency of the liquidation process and the non-contestation by the Respondent, the Authority directed the Respondent to discharge the total overdue amount of Rs. 19,57,637 along with interest within two weeks from the date of the order. The Authority disposed of the application with this direction and instructed the Registry to communicate the order to the concerned Municipality. The decision was made to ensure the timely realization of dues and to facilitate the liquidation process without further delay.
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