Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Once Resolution Plan Is Approved By NCLT, Corporate Entity Starts With Clean Slate : Calcutta High Court
Insolvency & Bankruptcy Code
The Calcutta High Court ruled that after insolvency proceedings and the approval of a resolution plan by the National Company Law Tribunal (NCLT), a corporate entity starts anew, free from past liabilities. \r
Defendant No. 1 had merged with Defendant No. 5 in 2008, but Defendant No. 5’s operations ceased, leading to insolvency proceedings. The approved resolution plan led to Defendant No. 5 emerging with a clean slate, extinguishing prior claims. \r
Consequently, the High Court struck off Defendant No. 1 and Defendant No. 5 from the case, as Defendant No. 1 ceased to exist post-merger and Defendant No. 5’s liabilities were nullified by the resolution plan.
