“As liquidation will get only a meagre value, the creditors will be most affected and the workmen will be losing their livelihood,” the tribunal said in an order passed on January 1 on an RP proposal from the union submitted on Dec. 19, 2018.
The bench cited a recent Supreme Court order in the Arcelor Mittal case wherein the apex court had said observed that the corporate debtor consists of several employees and workmen whose daily bread depends on the outcome of RP. And so if there is a resolution applicant who could continue to run the company as a going concern, every effort must be made to try and see that this is made possible.
Accordingly, “the main objective of the IBC is resolution rather than liquidation. If the liquidation is ord…
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