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Judgment
23.01.2025: This appeal is filed against an impugned order dated 27.07.2023 whereby while disposing of an application moved by the Appellant herein under Rule 11 of the National Company Law Tribunal Rules, 2016 read with Regulation 2(A) of the insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016, the following order was passed:
“iii.After considering the facts and circumstances of the present case, we observe that the liquidator has failed to fulfil the duties as assigned to it under the code as the liquidator is only interested in the payment of liquidator fees and has been continuously interested in delaying the liquidation process.
v.In the peculiar facts and circumstances of the present case, we are of the considered view that the matter needs to be referred to the Insolvency and Bankruptcy Board of India (IBBI) for proper scrutiny and audit of the expenses incurred under liquidation as prayed by the Respondent.
vi.The IBBI is directed to submit the status report within Two (2) months from the pronouncement of this Order, giving the details of the liquidation cost regarding the Liquidator's fee in order to complete the liquidation process.
The IBBI is at liberty to check or scrutinize all the bills or vouchers raised by the Liquidator in order to complete the liquidation process and to form a rational opinion regarding the expenses incurred by the Liquidator in order to complete the liquidation process.”
The Learned Counsel for the IBBI is present and submits he has also filed a status report as was required vide order dated 27.07.2023.
The Learned Counsel for the Appellant has also referred to an earlier order passed by this Bench on 15.03.2024 whereby Company Appeal (AT) (Ins.) No. 1288 of 2023 was disposed of while expunging the remarks made against the Liquidator.
On same reasoning given in the order dated 15.03.2024 we expunge the remarks against the Liquidator made by Ld. Adjudicating Authority while disposing of I.A. No. 5671 of 2021 by the impugned order.
Since the IBBI has filed status report as was required by the impugned order it would be appropriate if the copy of the report be filed before the Ld. NCLT as the proceedings are still pending before it and the Appellant be also given liberty to file a response/objections to the said status report in accordance with law.
With liberty aforesaid the appeal stands disposed of. Pending application(s), if any, are also disposed of.