Winwind Power Energy Private Limited Vs Assistant Registrar of Companies (Madras High Court)
Madras High Court held that no interpretation contrary to Section 53 of the Insolvency and Bankruptcy Code, 2016 [IBC] can be attributed to the expression ‘going concern sale’ as contemplated under Regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
Facts- The petitioner company is incorporated in the year 2007 under the Companies Act, 1956. It underwent corporate insolvency resolution process (CIRP) and liquidation process under the Insolvency and Bankruptcy Code, 2016 and came to be taken over as a going concern by one M/s. Agniti Industrial Parks Private Limited (for brevity, the new management) during the liquidation process under Regulation 32A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
These writ petitions have been filed challenging the show cause notices issued by the first respondent alleging violation of certain provisions of the Companies Act, 2013 and the intended prosecution that was sought to be launched against the petitioner.
Conclusion- Held that the Regulations framed under the authority conferred by the IBC itself cannot be construed to override the provisions of the IBC itself and that therefore, no interpretation contrary to Section 53 of the IBC can be attributed to the expression ‘going concern sale’ as contemplated under Regulation 32 of the Regulations.
