In the matter of Indiranagar Chit Fund & Trading Co. (Pvt.) Ltd.
- CitationI.A.Nos.409/2023, 687, 734, 909, 920/2024 in C.P.(IB)No.322/BB/2019
Ratio decidendi
The rule this decision rests on
The Tribunal's reasoning on the liquidator's extension application rests on the following points. Where a liquidator files an application for extension of the liquidation period after the period prescribed under the Rules has long expired, and gives no reasonable cause for the delay, the failure to seek extension within the prescribed timeline is a lapse of the liquidator's statutory duty, warranting initiation of disciplinary action by the regulator (IBBI). A liquidator who fails to make timely applications within the prescribed timelines, and cannot offer reasonable cause for the delay, may be called upon to explain the lapse; the Tribunal may refer the conduct to the regulator for disciplinary proceedings in respect of such misconduct. Where the remaining liquidation work is confined to recoveries under Section 66 of the Code and no other assets remain to be liquidated, the Tribunal may direct that the continuance of the liquidator be examined by the Stakeholders' Consultation Committee, with the liquidator required to place that matter before the committee for its recommendation.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Mr. Rajendra P. … Petitioner Vs. M/s. Indiranagar Chit Fund & Trading Co. (Pvt) Ltd. … Respondent Order under Section 9 of I & B Code, 2016 Order delivered on: 21.01.2025 CORAM: SH. K. BISWAL HON’BLE MEMBER (JUDICIAL) SH. RAVICHANDRAN RAMASAMY HON’BLE MEMBER (TECHNICAL) PRESENT: The Liquidator : Shri Shankar B. Iyer For the Liquidator : Shri S. Vivekananda For the R-3 in I.A.409/2023 : Shri I.S.Devaiah ORDER I.A.No.409/2023: 1. Heard the Ld. Counsels appearing for the parties. 2. Pleadings are complete. List the case on 27.02.2025. I.A.No.734/2024: 1. In this case we find that Shri Shankar B. Iyer, was appointed as Liquidator on 23.11.2020. He is also handling two CIRP cases which are over and two cases as liquidator. We find that he has made an Application seeking extension of Liquidation period of 673 days from 28.02.2023 to 31.12.2024. Application for such extension has been filed in July, 2024 with a delay of more than 500 days. We find that the act of Liquidator is completely careless
:2:
and he does not bothered to make extension Application for the liquidation period within the timeline provided under the Rules.
2. The Liquidator has been asked to explain the reason for not making Application in time, but he could not offer reasonable cause for the delay. Therefore, we direct the IBBI to initiate the disciplinary action against the Liquidator for the above misconduct.
3. Ld. Counsel for the Liquidator stated that there are no other assets to be liquidated and only certain recoveries to be made under Section 66 of IBC, 2016. We direct SCC to be conveyed to examine the issue of continuance of the Liquidator, as we find the Liquidator do not seem serve the purpose of Liquidation of the Corporate Debtor also. The Liquidator is directed to place an Agenda Item for continuance of Section 66 of IBC, 2016 Application with the clear recommendation of SCC within two weeks’ from the date of this order. Compliance Memo to be filed within two weeks after the meeting.
4. List the case on 27.02.2025.
I.A.Nos.687, 909 & 920/2024: These I.As are to be kept pending till the matter of extension is adjudicated by this Tribunal.
-Sd- -Sd- (RAVICHANDRAN RAMASAMY) (K. BISWAL) MEMBER (TECHNICAL) MEMBER (JUDICIAL)
Shruthi
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