Realisation of Debt due by Company is possible even if company stands dissolved u/s 250 of the Companies Act: DRAT

The Debt Recovery Appellate Tribunal (DRAT) has ruled that realization of debt due by a company is possible even if the company stands dissolved under the Companies Act. This significant decision ensures that dissolution does not automatically extinguish a company's financial liabilities, particularly towards secured creditors. The DRAT likely found that legal mechanisms exist to pursue debt recovery even from a dissolved entity, especially if assets remain. This ruling provides crucial recourse for lenders, ensuring that companies cannot escape their obligations by formally dissolving, thereby safeguarding the interests of creditors and promoting financial discipline.