Case Note & Summary
The appeal was filed by the Authorized Representative of workmen against the order of the National Company Law Tribunal (NCLT) regarding the liquidation of Clutch Auto Ltd. The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on 10.04.2017 and subsequently ordered into liquidation on 15.02.2018 due to failure of the process. The workmen submitted a claim of Rs. 3,27,33,780/- to the liquidator on 22.12.2018, which was admitted. The Appellant filed an application (IA No. 724 of 2025) on 25.01.2025 seeking disbursement of the admitted dues, but the matter faced several adjournments. The Appellant's counsel argued for a timely hearing of the application due to the extended liquidation period and pending applications. The Tribunal disposed of the appeal by requesting the NCLT to take up the application on 09.09.2026 and to ensure a time-bound disposal within four weeks. The appeal and pending applications were thus disposed of with these directions.
Headnote
A) Insolvency Law - Liquidation Process - Timely Hearing of Claims - Insolvency and Bankruptcy Code, 2016, Section Not Mentioned - The Appellant sought a direction for the NCLT to hear and dispose of the application for disbursement of dues in a timely manner due to delays in the liquidation process. The Tribunal directed the NCLT to take up the application on a specified date and dispose of it preferably within four weeks. Held that timely resolution is essential in insolvency matters (Paras 3-4).
Issue of Consideration
Whether the National Company Law Tribunal should expedite the hearing of the application for disbursement of admitted dues.
Final Decision
The Tribunal directed the NCLT to take up IA No. 724 of 2025 on 09.09.2026 and to dispose of it preferably within four weeks.
Law Points
- Insolvency proceedings
- Corporate Insolvency Resolution Process
- Liquidation
- Disbursement of dues
- Time-bound disposal
