Company under liquidation is disbarred from initiating legal proceeding without prior approval

Birla Cotsyn (India) Limited Vs Birla Global Corporate Private Limited (NCLT Mumbai) NCLT Mumbai held that as per section 33(5) of the Insolvency and Bankruptcy Code (Code) company under Liquidation is disbarred from initiating any legal proceedings without seeking the prior approval of the Adjudicating Authority. Accordingly, the Liquidator was not competent to initiate proceedings u/s. 7 of the Code. Facts- The Petitioner has granted a loan to the Respondent amounting to Rs. 2,00,73,991/- which is evident from the balance sheets of the Respondent as on 31.03.2015. Thereafter, CIRP proceeding...