In a significant ruling in Kridhan Infrastructure
Private Limited vs. Venkatesan Sankaranaryan &
Another1, NCLAT has held that timely
liquidation is to be preferred over endless
resolution. It has also held that unless the
liquidation order is shown to contain material irregularity or
fraud, liquidation order cannot be set aside using
inherent powersin the light of specific provisions under
section 61(4) of the Code. It has also categorically ruled that
stakeholders' consultation committee is different from
committee of creditors and the decision of
stakeholders' consultation committee is not binding on the
liquidator.
Briefly, in this case, upon failure of implementation of the
resolution plan by the Resolution Applicant, NCLT directed
liquidation of the corporate debtor as proposed by the committee of
creditors. The Resolution Applicant aggrieved with this order filed
an appeal before NCLAT alleging that it was not provided with an
opportunity of being heard and
