New India Color Company Ltd. Vs Samtex Desinz Pvt. Ltd. (In CIRP) & Anr. (NCLAT Delhi)
National Company Law Appellate Tribunal (NCLAT), in New India Color Company Ltd. vs. Samtex Desinz Pvt. Ltd. (In CIRP), held that no appeal under Section 61 of the Insolvency and Bankruptcy Code (IBC) is maintainable once the corporate debtor is dissolved under Section 54 of the IBC. The case involved an appeal against an order dated September 14, 2022, by the NCLT rejecting various reliefs sought by the appellant, including declaring a party as a related party and barring its inclusion in the Committee of Creditors (CoC).
During the hearing, the respondent highlighted that the corporate debtor, Samtex Desinz Pvt. Ltd., was dissolved as of July 8, 2024, pursuant to an NCLT order. It was argued that the dissolution rendered the appeal infructuous, as dissolution under Section 54 closes the matter of the corporate debtor entirely. Referring to a precedent (Sudhir Kumar Goel & Ors. vs. M/s Shashi Oils and Fats Pvt. Ltd.), the respondent emphasized that the tribunal’s jurisdiction is confined within the framework of the IBC, and post-dissolution, the corporate debtor ceases to exist legally.
The appellant argued for alternative remedies, such as applications under Section 231 of the Companies Act, 2013, or Section 66 of the IBC. However, the NCLAT reiterated that no liberty was granted to pursue these remedies through its ruling. Ultimately, the tribunal concluded that the appeal was no longer maintainable due to the corporate debtor’s dissolution.
