More time granted for insolvency process of Vasan Health Care Ltd.
The Hindu
Company cannot be pushed into liquidation, says NCLAT
The National Company Law Appellate Tribunal (NCLAT), Chennai, has allowed an appeal filed by the committee of creditors of Vasan Health Care Pvt. Ltd seeking extension of time-frame under the insolvency resolution process.
The NCLAT said it was of the view that Vasan Health Care cannot be pushed into liquidation and noted that the Supreme Court had held that the liquidation was the last resort in the insolvency process. It noted that there had been exceptional circumstances, including nation-wide lockdown, for not completing the insolvency process within time.
The creditors had filed an appeal against the order by National Company Law Tribunal (NCLT) which had rejected a plea seeking extension of time till November 30. The NCLT had granted time only till August 22 to finalise the accounts of Vasan Health Care and also issued directive for filing of liquidation application.