Creditors Must Adhere to Sections 52 & 53 of IBC for Debt Recovery: NCLAT Delhi

Anil Kohli Liquidator of Vegan Colloids Limited Vs Punjab National Bank (NCLAT Delhi) NCLAT Delhi held that all assets listed in the Corporate Debtor’s balance sheet are included in the Liquidation Estate u/s. 36 of the Insolvency and Bankruptcy Code, 2016. Further, upon liquidation, dues must be distributed strictly according to the waterfall mechanism outlined in Section 53 of the Code. Facts- On 21.11.2017, the Bank of India filed Company Petition u/s. 7 of the IBC against CD-M/s Vegan Colloids Limited. The petition was admitted by the Adjudicating Authority, initiating CIRP. However, 10....