2018 (12) TMI 2032

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.... 1. Heard Mr. Madon, learned Senior Counsel for the applicant, Mr. Saket Mone, learned Counsel for respondent nos.1 and 5, Mr. T.N. Subramaniyam, learned Senior Counsel for respondent no.2 and Mr. Rahul Gaikwad, learned Counsel for the Liquidator. Mr. Madon, learned Senior Counsel for the applicant states that respondent nos.3 and 4 are already served and the affidavit of service to that effect will be filed on or before 14 December 2018. 2. Respondent no.5 is directed to be wound up by the order passed by the National Company Law Tribunal dated 20 August 2018. 3. By this chamber summons, the applicant­ the original applicant in the application under Section 11 of the Act prays for an amendment to the Section 11 application in te....

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....ng powers and duties, namely: ­ (a) ..... ... . (k) to institute or defend any suit, prosecution or other legal proceedings, civil or criminal, in the name of on behalf of the corporate debtor; 7. Mr. Rahul Gaikwad, appearing for the official Liquidator submits that the Official Liquidator has stepped into the shoes of the Board of Directors in pursuance of the orders passed by the National Company Law Tribunal and is accordingly empowered to pursue the present proceedings. Mr. Gaikwad refers to the provisions of Section 35(1) of IBC. The Court's attention is drawn to the order dated 20 August 2018 passed by the National Company Law Tribunal more particularly paragraphs 6 which reads thus:­ "6. In v....

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....no suit or other legal proceeding shall be instituted by or against the Corporate Debtor without prior approval of this Adjudicating Authority save and except as mentioned in sub­section 6 of Section 33 of the Code. d. This liquidation order shall be deemed to be notice of discharge to the officers, employees and workmen of the Corporate Debtor except to the extent of the business of the Corporate Debtor is continued during the liquidation process by the Liquidator. e. The moratorium declared vide order dated 21.04.2017 ceased to exist." (emphasis supplied) 5. Having heard the learned Counsel for the parties and having perused the orders passed by National Company Law Tribunal and the provisions of Section 33(5) ....