Legally Speaking

NCLT Depreciated Filing Of Bulky Applications By Resolution Professionals & Liquidator

The National Company Law Tribunal in the case ICICI Bank v. M/s Tripati Inks Ltd, the principal bench comprising of Justice Ramalingam Sudhakar and Mr. Avinash Srivastava expressed it displeasure upon the practise of Resolution/ Liquidators for filing bulky applications even for trivial matters such as extension of liquidation period.

In the present case, the bench was adjudicating an application for extension of time moved by the liquidator of M/s Tirupati Inks Ltd. & Ors and was shocked to discover that the application filled ran into 122 pages.

While looking at the lengthy pleading, it was observed by the bench that the number of paragraphs in the application can be reduced by making concise statement and the pages should not be wasted unnecessarily.

Though the application was allowed by the NCLT based on its merits but directed the counsel for liquidator to make brief submission instead of filing a 122 pages application however it had directed to forward the copy of the order to Insolvency and Bankruptcy Board of India (IBBI) to ensure that the paper should not be wasted by Resolution Professional and liquidator in trivial matters.

TDG Network

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