Section 12A Application Not Permitted During Liquidation Period: NCLAT Principal Bench

The National Company Law Appellate Tribunal (NCLAT) Principal Bench ruled that Section 12A applications, which allow for withdrawal of insolvency proceedings, cannot be entertained during the liquidation period. The judgment clarified that once a company enters liquidation, the process should proceed without interruption, and applications for withdrawal under Section 12A should have been made prior to the liquidation order. This ruling emphasizes the finality and seriousness of the liquidation phase in insolvency proceedings, underscoring the need for stakeholders to act swiftly if they wish to resolve matters outside of liquidation.