Proceedings u/s 61 of IBC cannot be Instituted by Official Liquidator to Challenge Directions by IBBI: NCLAT

The NCLAT ruled that proceedings under Section 61 of the Insolvency and Bankruptcy Code (IBC), challenging directions by the Insolvency and Bankruptcy Board of India (IBBI), cannot be initiated by the official liquidator. The tribunal dismissed the plea, emphasizing that the IBC does not permit such actions by liquidators in this context. The case highlights the scope of powers and limitations of official liquidators under the IBC framework. It also underscores the importance of adhering to procedural and jurisdictional requirements when seeking recourse under insolvency laws. This judgment reinforces the principle that liquidators must operate within the boundaries established under the IBC. The decision is expected to provide clarity on the role and powers of liquidators, ensuring that legal proceedings are handled by the appropriate authorities stipulated in the law.