Ankit Kumar vs Advance Powerinfra Ltd

The special officer has filed his interim report. As per interim report, he has referred to an Order dated 09^th February 2025 passed in IA No. 1931 of 2023. Ld. Special Officer stated that there is a clerical error in report regarding Order dated 9^th February 2025, instead of 9^th February 2025 it is Order dated 9^th February 2024. Accordingly, Special officer is hereby directed to correct the interim report dated 16^th January 2025. Even, otherwise the date of the report has also not mentioned in the interim report. The said correction be carried out in the report. Fresh report be filed within a period of seven days from today. Ld. Special Officer has also stated that valuer has not prepared his report as he has made an excuse that Order of appointment has not been given by the liquidator to him. Therefore, he is unable to file the report. Registry is hereby directed to forward a copy of Order dated 9^th February 2024 to Mr. Bhavin R Patel, valuer on his email addresses as provided by him. Upon receipt of email, he is directed to comply the Order dated 09.02.2024.

List this matter on 03.09.2025.

PER: Ms. Rekha Kantilal Shah, Member (Technical)

This matter is listed before us today pursuant to a Mentioning Memo moved by the Learned Counsel on behalf of the Suspended Board of Directors of Corporate Debtor viz. Advance Power Infra Limited, seeking urgent directions for removal of the present Liquidator, Ms. Sonu Jain, who was appointed by this Tribunal vide order dated 26.09.2019.

The learned counsel submits that although the Liquidator was appointed over four years ago, she has grossly failed to discharge her statutory duties under the Insolvency and Bankruptcy Code, 2016 and relevant rules and regulations. The grounds for seeking her removal are detailed as follows:

In this peculiar factual matrix, the Learned Counsel submits that in the absence of a Stakeholders’ Consultation Committee, the erstwhile Board of Directors of the Corporate Debtor itself, being the most affected party and relying upon the reasoned order of Disciplinary Committee of the IBBI, may be permitted to seek the removal of the Liquidator upon showing sufficient cause.

Having heard the submissions, and perusing the material placed on record by the Ld. Counsel for the Corporate Debtor. The Present mentioning memo has been moved seeking to remove the present Liquidator.

In this regard, we may refer to section 16 of the General Clauses Act, 1897 which states as follows:

Thus, it could be seen a conjoint reading of Section 33 of IBC, 2016 with Section 16 of General Clauses Act, 1897 would show that the Authority which has the power to appoint a person, equally has the power to suspend or dismiss that person, in absence of any specific powers conferred thereto. Thus, by virtue of Section 16 of the General Clauses Act, 1897 it is clear that this Adjudicating Authority has the power to dismiss the Liquidator since this Authority is vested with the power under section 33 and 34 of IBC, 2016 to appoint a Liquidator.

Now, this Tribunal takes judicial notice of the disciplinary action initiated and the consequential suspension of registration of the Liquidator by the Insolvency and Bankruptcy Board of India via order dated 06.03.2025. Such regulatory action severely impairs the Liquidator’s ability to continue holding such fiduciary position under the IBC framework. For the sake of convenience, the relevant portion of the Disciplinary Committee Order, is being reproduced herein below:

Moreover, in exercise of the inherent powers of this Tribunal under Rule 11 of the National Company Law Tribunal Rules, 2016, read with Section 16 of the General Clauses Act, 1897 which recognizes the power to “appoint, suspend or remove” any appointee unless a contrary intention appears, this Tribunal is empowered to remove or replace or change a liquidator where such action is necessary to secure the ends of justice and preserve the sanctity of the process.

Accordingly, this Tribunal is satisfied that the Liquidator, Ms. Sonu Jain, has failed to carry out her duties in accordance with the IBC, 2016, the IBBI (Liquidation Process) Regulations, 2016, and related laws and guidelines, and her continuation would defeat the objectives of the liquidation process.

In view thereof this Tribunal is inclined to pass following order:

List this matter be listed on 03.09.2025 for further considerations.