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 the 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 had been adjourned multiple times. The Appellant's counsel argued for a timely hearing of the application, noting that the liquidation period had been extended twice. The NCLAT disposed of the appeal by requesting the NCLT to take up the application on 09.09.2026 and to resolve it within four weeks. The appeal and pending applications were thus disposed of with directions for expedited proceedings.
Headnote
A) Insolvency Law - Liquidation Process - Expedited Hearing - Insolvency and Bankruptcy Code, 2016, Section 60 - The Appellant sought a direction for the NCLT to hear and dispose of their application for disbursement of admitted dues in a timely manner. The court 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 liquidation matters (Paras 3-4).
Issue of Consideration
Whether the NCLT should expedite the hearing of the application for disbursement of admitted dues of workmen.
Final Decision
The NCLAT 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
