CoCs has right to appoint liquidator for debt-ridden firm, not NCLT: NCLAT

Only the Committee of Creditors (CoC) has the authority to appoint a liquidator for a debt-ridden company undergoing insolvency procedure, and not the NCLT, in cases where a Resolution Professional has not submitted a written consent, the appellate tribunal NCLAT has said.

- PTI

Passing a common order in two identical matters, where the National Company Law Tribunal (NCLT) had itself appointed liquidators of two insolvency-bound companies, the appellate tribunal set aside those appointments, observ-

ing “only CoC has the authority to select the candidate for replacing the RP”.