Liquidator power to pursue or defend pre existing legal proceedings affirmed, with impleadment allowed and amendment ordered.

Interpretation of liquidator powers under the Insolvency and Bankruptcy regime determines that the liquidator may pursue pre existing suits and be impleaded as a party; Section 35(1)(k) confers substantive authority to institute or defend civil or criminal proceedings in the name of or on behalf of the corporate debtor, subject to directions of the adjudicating authority, and Section 33(5) does not bar such participation. The High Court allowed the chamber summons for impleadment and ordered amendment within one week; a pending Section 11 application was directed to be listed for hearing.

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Issues: Whether the Official Liquidator can be impleaded and prosecute/continue pending proceedings on behalf of the corporate debtor after a liquidation order, by amendment of the Section 11 application.

Analysis: Section 33(5) of the Insolvency and Bankruptcy Code, 2016 bars instituting suits or legal proceedings by or against the corporate debtor after a liquidation order, while its proviso permits institution by the liquidator with prior approval of the Adjudicating Authority. Section 35(1) of the Insolvency and Bankruptcy Code, 2016 (including clause (k)) confers substantive powers on the liquidator to institute or defend suits and to take measures necessary to protect the corporate debtor's property, subject to directions of the Adjudicating Authority. The present proceedings were instituted prior to the liquidation order and are sought to be continued; the Official Liquidator is not instituting a new proceeding but seeking to prosecute an existing one and to be impleaded pursuant to the liquidator's statutory powers and the liquidation order which vested management powers in the liquidator.

Conclusion: The Official Liquidator may be impleaded and may continue to prosecute the pending proceedings on behalf of the corporate debtor; the chamber summons for amendment to implead the liquidator is allowed in favour of the applicant.

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