https://www.taxtmi.com/caselaws?id=448497 The NCLAT Principal Bench overturned an Adjudicating Authority's penalty order under Section 65 of the Insolvency and Bankruptcy Code, 2016 against assenting CoC members. The CoC had voted with 88.48% share to liquidate the corporate debtor after five meetings without exploring resolution possibilities. The NCLAT held that CoC has jurisdiction to order liquidation with 66% voting share before resolution plan confirmation, citing Section 33(2) and its explanation. The Authority erred in requiring completion of all resolution steps before liquidation decision. Referencing precedent, the tribunal found no malicious intent and ruled Section 65 inapplicable as the application was for liquidation purposes. The appeal was allowed. en-us Wed, 17 Jan 2024 00:00:00 +0530 Fri, 19 Jan 2024 22:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448497 The NCLAT Principal Bench overturned an Adjudicating Authority's penalty order under Section 65 of the Insolvency and Bankruptcy Code, 2016 against assenting CoC members. The CoC had voted with 88.48% share to liquidate the corporate debtor after five meetings without exploring resolution possibilities. The NCLAT held that CoC has jurisdiction to order liquidation with 66% voting share before resolution plan confirmation, citing Section 33(2) and its explanation. The Authority erred in requiring completion of all resolution steps before liquidation decision. Referencing precedent, the tribunal found no malicious intent and ruled Section 65 inapplicable as the application was for liquidation purposes. The appeal was allowed. Case-Laws Insolvency and Bankruptcy Wed, 17 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448497