IBC: Commercial or business decision taken by the Liquidator for conducting the sale of the assets of the Corporate Debtor are not subject to judicial review

It is not for the court to question the judiciousness of the decision taken by the Liquidator with the idea of enhancing the value of the assets of the Corporate Debtor being put up for sale. The right to refuse the highest bid or completely abandon or cancel the bidding process was available to the Liquidator unless it is shown that process was a malafide exercise

Category: Insolvency and Bankruptcy Code 2016   Posted on: September 11, 2022

IBC prevails over the Customs Act. Custom Authorities have no power to sell goods during CIRP/Liquidation Process

The IBC prevails over The Customs Act, to the extent that once moratorium is imposed in terms of Sections 14 or 33(5) of the IBC as the case may be, the respondent authority only has a limited jurisdiction to assess/ determine the quantum of customs duty and other levies. The respondent authority does not have the power to initiate recovery of dues by means of sale/ confiscation, as provided under the Customs Act.

Category: Insolvency and Bankruptcy Code 2016   Posted on: September 11, 2022