Liquidator Can Recover Amount Which Belongs To Corporate Debtor By Filing Application U/S 60(5)(c) Of IBC: NCLAT

The NCLAT ruled that a liquidator can recover amounts owed to a corporate debtor under Section 60 of the Insolvency and Bankruptcy Code (IBC). The tribunal emphasized that the liquidator has the statutory authority to pursue claims and recover dues to maximize asset realization for creditors. The case involved a liquidator seeking recovery of funds from third parties, which was upheld by the tribunal. Legal experts view this decision as a reaffirmation of the liquidator’s powers under the IBC framework, ensuring effective resolution and distribution of assets. The ruling advises liquidators to actively pursue recoveries to optimize the insolvency resolution process. This judgment aligns with the broader objectives of the IBC, promoting transparency, accountability, and fair treatment of creditors while balancing the interests of all stakeholders involved in the liquidation process.