Can we pass an arrest order under insolvency law, NCLAT asks Centre

Section 74(3) of the IBC stipulates that officers of those companies who knowingly and wilfuly contravene the terms of the resolution plan should be sentenced to imprisonment

The National Company Law Appellate Tribunal (NCLAT) has sought response from the Ministry of Corporate Affairs and the Insolvency and Bankruptcy Board of India on whether it or the National Company Law Tribunal (NCLT) can pass penal orders against entities which are successful bidders for companies under the Corporate Insolvency Resolution Process (CIRP), but fails to follow the process through.

The NCLAT’s question is to do with the case of the Liberty House Group, a London-based industrial and metal company, which withdrew from the CIRP after being declared the successful resolution applicant for Amtek Auto. The company was referred to