Bdr Builders & Developers Pvt Ltd vs Fantastic Buildcon Pvt. Ltd. & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 862 of 2019
Ratio decidendi
The rule this decision rests on
Regulation 3 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, requiring a liquidator to disclose any relationship with the corporate debtor, is directory and not mandatory, so non-compliance with it does not invalidate the appointment of the person named as liquidator. Under Section 34 of the Insolvency and Bankruptcy Code, 2016, it is open to the Adjudicating Authority to permit the Resolution Professional to continue as liquidator in the liquidation of the corporate debtor.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
BDR Builders & Developers Pvt. Ltd. ...Appellant
Versus
Fantastic Buildcon Pvt. Ltd. & Anr. ...Respondents
Present:
For Appellant : Mr. Rakesh Kumar and Mr. Aashish Khattar, Advocates
ORDER
29.08.2019 This appeal has been preferred by 'BDR Builders & Developers
Pvt. Ltd.' (Financial Creditor) against the order of 'Liquidation' dated 2nd July,
2019 passed by the Adjudicating Authority (National Company Law Tribunal),
Principal Bench, New Delhi. The main grievance is against the individual
appointment as 'Liquidator'.
2. Learned counsel appearing on behalf of the Appellant relied on Regulation
3 of 'Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations
2016' to suggest that the 'Liquidator' was required to disclose its relationship
with the 'corporate debtor' but the same has not been done and appointed 'Mr.
Om Prakash Vijay', 'Resolution Professional', as 'Liquidator'. However, as the
regulation is a directory one and not a mandatory, we are of the view that it is
always open to the Adjudicating Authority to allow the 'Resolution Professional'
to continue as a 'Liquidator' in accordance with the provisions of Section 34 of
the 'I&B Code'.
Contd/-............
-2-
3. For the reasons aforesaid, we are not inclined to interfere with the
directions of continuation of the 'Resolution Professional' as 'Liquidator'.
The appeal stands disposed of. No costs.
[Justice S.J. Mukhopadhaya] Chairperson
[ Justice A.I.S. Cheema ] Member (Judicial)
[ Kanthi Narahari ] Member (Technical) /ns/sk
Company Appeal (AT) (Insolvency) No. 862 of 2019
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