Liquidator can Recover Amount belongs to Corporate Debtor through Application u/s 60(5)(c) of IBC: NCLAT

In a recent ruling, the National Company Law Appellate Tribunal (NCLAT) upheld that a liquidator can recover funds owed to a corporate debtor through an application under Section 60(5) of the Insolvency and Bankruptcy Code (IBC). The decision emphasizes the role of liquidators in ensuring the fair recovery of dues in insolvency proceedings. The ruling clarifies that liquidators are authorized to act on behalf of the corporate debtor to recover outstanding amounts, provided they follow the correct legal process. This case highlights the importance of proper management of financial claims during the liquidation process, ensuring that creditors and stakeholders are treated fairly. The NCLAT’s decision strengthens the legal framework for resolving insolvency cases and ensures that the rights of creditors are preserved in liquidation scenarios.