IBC/Recent Decision : NCLT Has Power to Terminate CIRP

Insolvency and Bankruptcy Code : India Updates

In this recent decision [citation : [2021] GCtR 1219], it has been held that the National Company Law Tribunal has the power to terminate the corporate insolvency resolution process ("CIRP") . It is also held that the resolution professional can be discharged from his duties by NCLT. 

Finally, the CIRP was terminated by Ld. NCLT in this case.

It is to be noted that Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 ("Ordinance")  had introduced S.54F to Insolvency and Bankruptcy Code ("IBC, 2016")  which provides for the role of Resolution Professional in pre-packaged insolvency resolution process and S.61(4) of IBC, 2016 was amended through the said Ordinance.  

Vishal

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