NCLT Kolkata Emphasizes Transparency in Public Procurement Processes

The Hon’ble NCLT Kolkata Bench ruled that Regulation 33(3) of the IBBI (Liquidation Process) Regulations mandates strict adherence to ensure transparency in asset recovery. 

The bench emphasized that collusion among parties results in under-recovery, undermining the objectives of the Insolvency and Bankruptcy Code (IBC), 2016. 

The Bench noted that while Clauses 1C and 1D of Schedule I are sometimes seen as a directory, the usage of "Shall" in these provisions makes them imperative. This approach ensures transparency and eliminates arbitrariness in public procurement processes during liquidation, reinforcing fair and efficient asset recovery.