Whether the promoters can claim that 'they should have been given an opportunity to settle the dues, if Committee of Creditors did not find any resolution plan as viable and feasible.' Citing relevant decision whether th

In the matter of Y. Shivram Prasad & Ors. vs. S. Dhanapal & Ors , the NCLAT passed the impugned order of liquidation as Committee of Creditors did not find any resolution plan viable and feasible. The promoters submitted that they should have been given an opportunity to settle the dues. While rejecting the said submission, the NCLAT clarified that settlement can be made only at three stages, i.e., before admission, before constitution of CoC and in terms of section 12A of the Insolvency and Bankruptcy Code (IBC) and such stages were over in this instant matter. It, however, observed that during the liquidation process, it is necessary to take steps for revival and continuance of the Corporate Debtor by protecting it from its management and from a death by liquidation. Wherein this Appellate Tribunal having noticed the decision of the Hon'ble Supreme Court in " Swiss Ribbon Pvt. Ltd. & Anr. vs. Union of India & Ors where Hon'ble Supreme Court observed that "What is interesting to note is that the Preamble does not, in any manner, refer to liquidation, which is only availed of as a last resort if there is either no resolution plan or the resolution plans submitted are not up to the mark. Even in liquidation, the liquidator can sell the business of the corporate debtor as a going concern" and NCLAT in its matter further held that "in view of the provision of Section 230 and the decision of the Hon'ble Supreme Court in 'Swiss Ribbons Pvt. Ltd.', we direct the 'Liquidator' to proceed in accordance with law." He will verify claims of all the creditors; take into custody and control of all the assets, property, effects and actionable claims of the 'corporate debtor', carry on the business of the 'corporate debtor' for its beneficial liquidation, etc. as prescribed under Section 35 of the Code. If the members or the 'Corporate Debtor' or the 'creditors' or a class of creditors like 'Financial Creditor' or 'Operational Creditor' approach the company through the liquidator for compromise or arrangement by making proposal of payment to all the creditor(s), the Liquidator on behalf of the company will move an application under Section 230 of the Companies Act, 2013 before the Adjudicating Authority i.e. National Company Law Tribunal, in terms of the observations as made in above. On failure, as observed above, steps should be taken for outright sale of the 'Corporate Debtor' so as to enable the employees to continue."