Mar 31, 2023

Delhi HC Rules that RP Can Continue to Pursue Avoidance Applications Even After Approval of Resolution Plan

In Tata Steel BSL Limited v. Venus Recruiters Ltd.[1], a Division Bench of the Delhi HC held that the adjudication of avoidance applications is independent of the CIRP and can survive CIRP. The Court further held that any benefit arising out of the avoidance application should be made available to the creditors of the corporate debtor and cannot be given to the RP.

[1] Tata Steel BSL Limited v. Venus Recruiters Ltd., 2023 SCC OnLine Del 155.




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