Jai Narayan Gupta vs Radhasiriya Properties Pvt. Ltd

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHI Company Appeal (AT) (Insolvency) No.1473 of 2023 (Arising out of Order dated 03.10.2023 passed by the Adjudicating Authority (National Company Law Tribunal), Division Bench, Court No.II, Kolkata, in I.A. (IB) No.975/KB/2023 in C.P.(IB) No.830/KB/2018)

IN THE MATTER OF: CA Jai Narayan Gupta (Liquidator of Barcle Enterprises Limited) YMCA Building, 2nd Floor, 25, Jawahar Lal Nehru Road, Kolkata - 700087 ... Appellant

Vs

Radhasiriya Properties Pvt. Ltd. 22A, Karnani Estate, 209, AJC Bose Road, Ist Floor, Kolkata- 700017 ... Respondent

Present:

For Appellant: Mr. Anoop Prakash Awasthi, Advocate.

For Respondent: Ms. Swati Dalmia, Mr. Palzer Moktan, Ms. Safura Ahmed, Advocates.

JUDGMENT

ASHOK BHUSHAN, J.

This Appeal by the Liquidator of Corporate Debtor has been filed

challenging the order dated 03.10.2023 passed by the National Company

Law Tribunal, Division Bench, Court No.II, Kolkata in I.A. (IB)

No.975/KB/2023 filed by Respondent. The Adjudicating Authority by the

impugned order has directed the Liquidator to refund the amount of

Rs.23,88,280/-, which was received from Respondent towards fee of

Company Appeal (AT) (Insolvency) No.1473 of 2023 1 Liquidator and cost. The Appellant aggrieved by the said order has come

up in this Appeal.

2. Brief facts of the case necessary to be noticed for deciding the Appeal

are:

(i) Liquidation process of the Corporate Debtor - M/s Barcle

Enterprises Limited commenced by an order dated

24.01.2022. The Appellant was appointed as a Liquidator of

the Corporate Debtor in terms of Section 33, sub-section (2) of

the Insolvency and Bankruptcy Code, 2016 (hereinafter

referred to as the "Code").

(ii) The Respondent - Radhasiriya Properties Pvt. Ltd. sent an

intimation to the Liquidator, expressing its interest in

submitting a scheme of compromise and arrangement. On

15.03.2022, Respondent No.1 submitted its scheme to the

Liquidator. After certain correspondence, the Liquidator

accepted the scheme on 12.05.2022 and I.A. (IB)

No.495/KB/2022 was filed by the Liquidator before the

Adjudicating Authority seeking a direction to the Liquidator to

conduct a meeting of the Creditors under Regulation 2B of the

IBBI (Liquidation Process) Regulation, 2016 (hereinafter

referred to as the "Liquidation Regulations, 2016") read with

Section 230(1) of the Companies Act, 2013.

Company Appeal (AT) (Insolvency) No.1473 of 2023 2

(iii) The Liquidator sent different emails to the Proponent of the

Scheme demanding various amounts from Respondent to be

paid. Certain amounts were paid by Respondent to the

Liquidator. The Liquidator sent various reminders asking the

Respondent to make the payment towards cost and fee of the

Liquidator as well as for depositing the estimated amount

under the Scheme. A letter was written by Respondent to the

Liquidator asking the provision of the Code under which the

Liquidator is seeking payment of the entire amount proposed

to be paid under the Scheme. On account of various letters

issued by the Liquidator, further amounts were paid by the

Respondent to the Liquidator. Total amount paid by the

Respondent to the Liquidator was Rs.23,88,280/- from

20.04.2022 to 28.02.2023.

(iv) Under the order of the Adjudicating Authority dated

06.01.2023, the Liquidator convened a meeting of Creditors on

17.02.2023. In the meeting of the Creditors held on

17.02.2023, the scheme submitted by Respondent was

rejected by the Creditors. Respondent received an email from

the Liquidator on 1st March, 2023 informing it that in the

meeting of the Creditors, the scheme submitted by the

Respondent has been rejected.

Company Appeal (AT) (Insolvency) No.1473 of 2023 3

(v) The Respondent, i.e. , the Scheme Proponent filed an

Application before the Adjudicating Authority being I.A. (IB)

No.975/KB/2023, where following prayers were made:

"a. That this Hon'ble Tribunal be pleased to direct the Respondent to forthwith refund the amount of Rs.23,88,280 (Rupees Twenty-Three Lakh Eighty-Eight Thousand Two Hundred and Eighty Only) to the Applicant or such other amount as this Hon'ble Tribunal may deem fit and proper.

b. That this Hon'ble Tribunal be pleased to pass such other and further orders as the Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the present case."

(vi) The Liquidator filed a reply to the Application, justifying the

payments received from the Respondent. It was pleaded by the

Liquidator that under the Liquidation Regulations, 2016, the

Liquidator is entitled to receive his fee for the period of

compromise and arrangement. It was pleaded that the amount

deposited covers the fee from the Liquidation Commencement

Date, i.e., 24.01.2022 till 25.02.2023 amounting to

Rs.23,01,000/-. In paragraph 14 of the reply, details were

given by the Liquidator regarding liquidation costs during the

period of compromise.

(vii) The Adjudicating Authority after hearing the Counsel for the

Respondent as well as the Liquidator, passed the impugned

Company Appeal (AT) (Insolvency) No.1473 of 2023 4 order allowing the Application filed by the Respondent. The

Adjudicating Authority in the impugned order held that

Liquidator is not entitled to receive any fee. It was held by the

Adjudicating Authority that since the Scheme was rejected, the

liquidation cost including liquidation fee was wrongly claimed

by the Liquidator from the Scheme Proponent, i.e.,

Respondent. The Adjudicating Authority, consequently

directed the Liquidator to refund the entire amount of

Rs.23,88,280/-.

Aggrieved by which order this Appeal has been filed.

3. We have heard Shri Anoop Prakash Awasthi, learned Counsel

appearing for the Appellant and Ms. Swati Dalmia, learned Counsel

appearing for the Respondent.

4. The learned Counsel appearing for the Appellant challenging the

impugned order submits that the Appellant charged fee for the period from

15.03.2022 to 17.02.2023 as per the provisions of Regulation 4(2)(a) read

with Proviso to Regulation 2B(3) of the Liquidation Regulations, 2016. It is

contended that Regulation 2B has been prepared to balance the equity to

encourage only the serious proposals of compromise or arrangement and

hence, the time taken, is taken outside the liquidation period and where

compromise or arrangement is not sanctioned by the Tribunal, the

Applicant (Proponent of the Scheme) of such compromise or arrangement

is burdened with the cost. It is submitted that if liquidation fee and cost is

Company Appeal (AT) (Insolvency) No.1473 of 2023 5 not charged from Scheme Proponent, non-serious parties or parties with

vested interest and malafide motives may come up and propose

compromise and arrangement and will be able to successfully halt the

liquidation process without any pecuniary consequences on them. The

Appellant was not required to work free of cost during the period of

consideration of the scheme of compromise and arrangement. It was the

Scheme Proponent, who has to bear the liquidation fee. The terminology

of "liquidation cost", is not applicable to cases under Section 230 of the

Companies Act, 2013. The Adjudicating Authority was utterly unjustified

in depriving the Appellant of its legitimate fee and the order is against the

provisions of the Code and Regulations.

5. The learned Counsel for the Respondent contended that amount of

Rs.23,88,280/- was paid by the Respondent at the insistence of the

Liquidator. The Liquidator pressurized the Respondent into making

payment, which is clear from the email sent by the Liquidator on

23.12.2022. Even after the scheme was rejected on 17.02.2023, the

Liquidator accepted the amount from the Respondent. It is submitted that

as per Regulation 2B(3) of the Liquidation Regulations, 2016, cost in

relation to compromise and arrangement is to be borne by the parties, who

proposes compromise and arrangement. The term 'cost' only indicates cost

incurred by the Liquidator in respect of compromise and arrangement and

no other cost as sought to be asserted by the Liquidator could have been

paid. In cases where scheme of arrangement submitted by a Propounder

is rejected, then at the highest, such Propounder is liable to contribute

Company Appeal (AT) (Insolvency) No.1473 of 2023 6 towards the expenses incurred in relation to such compromises or

arrangements. The Liquidator is entitled to his fee as per Section 34, sub-

section (9) of the Code for conducting the liquidation proceedings, out of

the proceeds of the liquidation estate. The Liquidator has attempted to

incorrectly and inaptly interpret Regulation 2B of the Liquidation

Regulations, 2016. The Liquidator has wrongfully withheld the amount

remitted by the Respondent. The present Appeal deserves to be dismissed

with costs.

6. We have considered the submission of learned Counsel for the

parties and have perused the records.

7. The facts and sequence of events between the parties have been

noted by the Adjudicating Authority in its impugned order, which needs no

repetition. It is admitted fact between the parties that the Respondent, who

has proposed the scheme of compromise and arrangement dated

15.03.2022 was required by the Liquidator to pay various amounts from

time to time and total amount paid by the Respondent was an amount of

Rs.23,88,280/-, for refund of which amount an I.A. (IB) No.975/KB/2023

was filed, which was allowed by the Adjudicating Authority. The Liquidator

has filed the reply to the I.A. (IB) No.975/KB/2023, where it has given the

details of amount, which according to the Liquidator, the Respondent was

liable to pay. It is useful to extract paragraph 14 of the reply, which contain

all details regarding liquidation fee and the expenses as was claimed by the

Liquidator. Paragraph 14 of the reply of the Liquidator is as follows:

Company Appeal (AT) (Insolvency) No.1473 of 2023 7 Particulars Amount (Rs.) Liquidator's fee for 13 months (Jan 2022 23,01,000

- Feb 2023) Publication of Form B for initiation of 5,376 liquidation Drafting and Filing fee for IA 409/2022 - 10,000 Extension of time period of scheme of compromise or arrangement Drafting and Filing fee for IA 495/2022 - 10,000 Approval to conduct meeting of creditors Drafting and Filing fee for IA 1355/2022 10,000

- Progress report for 30.09.2022 Drafting and Filing fee for IA 358/2023 - 10,000 Affidavit of Service u/r 12 of CAA Rules Drafting and Filing fee for IA 521/2023 - 11,800 Result of meeting of creditors Publication of Form CAA 2 2,352 Audit fee for FY 2021-22 20,000 Bank charges till 17.02.2023 638 MSME registration of the Corporate 2,700 Debtor ROC filing fee 600 Sub-total 23,94,466 Other expenses Publication of sale notices dt. 10,626 27.02.2022, 22.03.2022 and 14.04.2022 E-voting charges 7,080 Total 24,12,172

8. When we look into the reply of Liquidator filed in the Application, the

Liquidator has claimed Liquidator's fee for 13 months as Rs.23,01,000/-

and rest of the amount included in total of Rs.24,12,172/- is the amount

spent on various expenses incurred by the Liquidator . The question to be

answered in this Appeal is as to whether the Liquidator's claim to retain

the amount received from the Scheme Proponent is justified or not and as

Company Appeal (AT) (Insolvency) No.1473 of 2023 8 to whether Adjudicating Authority committed any error in directing refund

of the amount? Before we proceed to consider the rival submission of the

parties, it is necessary to notice relevant provisions of the Code as well as

the Liquidation Regulations, 2016 governing the payment of fee and costs

of the liquidation. Section 34 deals with 'Appointment of liquidator and fee

to be paid'. Section 34, sub-sections (8) and (9), which deals with fee for

the conduct of the liquidation proceedings, are as follows:

"34(8) An insolvency professional proposed to be appointed as a liquidator shall charge such fee for the conduct of the liquidation proceedings and in such proportion to the value of the liquidation estate assets, as may be specified by the Board.

(9) The fees for the conduct of the liquidation proceedings under sub-section (8) shall be paid to the liquidator from the proceeds of the liquidation estate under section 53."

9. The above statutory provision is clear that Liquidator fee for the

conduct of the liquidation proceedings has to be paid from the value of the

liquidation estate assets. The IBBI (Liquidation Process) Regulation, 2016

deals with all aspects of the liquidation process, including payment of fee

and costs. Regulation 2(1)(ea) defines the 'liquidation cost', which is to the

following effect:

"2(1)(ea) "liquidation cost" under clause (16) of section 5 means-

(i) fee payable to the liquidator under regulation 4;

(ii) remuneration payable by the liquidator under sub-

regulation (1) of regulation 7;

Company Appeal (AT) (Insolvency) No.1473 of 2023 9

(iii) costs incurred by the liquidator under sub-

regulation (2) of regulation 24;

(iv) costs incurred by the liquidator for preserving and protecting the assets, properties, effects and actionable claims, including secured assets, of the corporate debtor;

(v) costs incurred by the liquidator in carrying on the business of the corporate debtor as a going concern;

(vi) interest on interim finance for a period of twelve months or for the period from the liquidation commencement date till repayment of interim finance, whichever is lower;

(vii) the amount repayable to contributories under sub-

regulation (3) of regulation 2A;

(viii) any other cost incurred by the liquidator which is essential for completing the liquidation process:

Provided that the cost, if any, incurred by the liquidator in relation to compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013), if any, shall not form part of liquidation cost."

10. The proviso to above definition makes it clear that cost, if any,

incurred by the Liquidator in relation to compromise or arrangement under

Section 230 of the Companies Act, if any, shall not form part of liquidation

cost.

11. Regulation 2B of the Liquidation Regulations, 2016, deals with

'Compromise or arrangement', which is as follows:

Company Appeal (AT) (Insolvency) No.1473 of 2023 10 "2B. Compromise or arrangement. (1) Where a compromise or arrangement is proposed under section 230 of the Companies Act, 2013 (18 of 2013), it shall be completed within ninety days of the order of liquidation under sub-sections (1) and (4) of section 33.

Provided that a person, who is not eligible under the Code to submit a resolution plan for insolvency resolution of the corporate debtor, shall not be a party in any manner to such compromise or arrangement.

(2) The time taken on compromise or arrangement, not exceeding ninety days, shall not be included in the liquidation period.

(3) Any cost incurred by the liquidator in relation to compromise or arrangement shall be borne by the corporate debtor, where such compromise or arrangement is sanctioned by the Tribunal under sub- section (6) of section 230:

Provided that such cost shall be borne by the parties who proposed compromise or arrangement, where such compromise or arrangement is not sanctioned by the Tribunal under sub-section (6) of section 230."

12. Sub-clause (3) of Regulation 2B specifically provides that any cost

incurred by the Liquidator in relation to compromise or arrangement shall

be borne by the Corporate Debtor, where such compromise or arrangement

is sanctioned by the Tribunal under sub-section (6) of Section 230 and

whereas such cost shall be borne by the parties who proposed compromise

or arrangement, where such compromise or arrangement is not sanctioned

Company Appeal (AT) (Insolvency) No.1473 of 2023 11 by the Tribunal under sub-section (6) of Section 230. At this juncture, we

may also extract sub-section (6) of Section 230 of the Companies Act, 2013,

which is as follows:

"230(6) Where, at a meeting held in pursuance of sub-section (1), majority of persons representing three- fourths in value of the creditors, or class of creditors or members or class of members, as the case may be, voting in person or by proxy or by postal ballot, agree to any compromise or arrangement and if such compromise or arrangement is sanctioned by the Tribunal by an order, the same shall be binding on the company, all the creditors, or class of creditors or members or class of members, as the case may be, or, in case of a company being wound up, on the liquidator and the contributories of the company."

13. Regulation 4 of Liquidation Regulations, 2016, deals with

'Liquidator's fee'. Regulation 4, sub-section (2), which is relevant for the

present case, is as follows:

"4(2) In cases other than those covered under sub- regulation (1), the liquidator shall be entitled to a fee-

(a) at the same rate as the resolution professional was entitled to during the corporate insolvency resolution process, for the period of compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013); and

(b) as a percentage of the amount realised net of other liquidation costs, and of the amount distributed, for the balance period of liquidation, as under:

Company Appeal (AT) (Insolvency) No.1473 of 2023 12 Amount of Percentage of fee on the amount Realisation/ realized/ distributed Distribution (In in the first in the next thereafter Rupees) six months six months On the first 1 crore 5.00 3.75 1.99 On the next 9 crore 3.75 2.80 1.41 On the next 40 crore 2.50 1.88 0.94 On the next 50 crore 1.25 0.94 0.51 On further sums 0.25 0.19 0.10 realized Amount Distributed to Stakeholders On the first 1 crore 2.50 1.88 0.94 On the next 9 crore 1.88 1.40 0.71 On the next 40 crore 1.25 0.94 0.47 On the next 50 crore 0.63 0.48 0.25 On further sums 0.13 0.10 0.05"

distributed

14. We may now examine as to whether the Scheme Proponent, who has

submitted scheme for compromise and arrangement is liable to pay any

liquidation fee, since in the present case, Liquidator is claiming a

liquidation fee of Rs.23,01,000/- from the Scheme Proponent.

15. We have already noticed the provision of Section 34, sub-sections (8)

and (9), which deals with fee of Liquidator for conduct of liquidation

proceedings. The payment of fee, thus, has to be as per the statutory

provisions under Section 34 sub-sections (8) and (9). Regulation 2B, which

deals with 'compromise or arrangement' specifically provide for payment of

cost incurred by the Liquidator in relation to compromise and

arrangement. Sub-regulation (3) of Regulation 2B is to the following effect:

Company Appeal (AT) (Insolvency) No.1473 of 2023 13 "2B(3) Any cost incurred by the liquidator in relation to compromise or arrangement shall be borne by the corporate debtor, where such compromise or arrangement is sanctioned by the Tribunal under sub- section (6) of section 230:

Provided that such cost shall be borne by the parties who proposed compromise or arrangement, where such compromise or arrangement is not sanctioned by the Tribunal under sub-section (6) of section 230."

16. The sub-regulation (3) of Regulation 2B, makes it clear that

Liquidator is entitled to receive the cost incurred by the Liquidator in

reference to comprise and arrangement from the Corporate Debtor and

from the Proponent of the Scheme. In case the compromise is sanctioned,

the cost shall be borne by the Corporate Debtor and in case compromise is

not sanctioned the cost shall be borne by the parties, who proposed

compromise or arrangement. The statutory provision is, thus, clear that

Liquidator can only claim cost incurred from the parties who proposed the

compromise or arrangement.

17. We have also noticed Regulation 4 of the Liquidation Regulations,

2016, which deals with Liquidator's fee. The Regulation 2B, only refers to

cost incurred by the Liquidator. Regulation 2B, does not include fee.

Regulation 4 of Liquidation Regulations, 2016 deals with fee. Thus, the

Rule making Authority is fully aware of the difference between the cost and

fee. Regulation 2B does not indicate that any fee by Liquidator can be

charged from the Scheme Proponent. The Liquidator is entitled to his fee

Company Appeal (AT) (Insolvency) No.1473 of 2023 14 as per the statutory provision of Section 34, sub-section (8) and (9) as noted

above read with Regulation 4 of Liquidation Regulations, 2016. No fee can

be charged from the Scheme Proponent, who has submitted the Scheme

under Section 230 of the Companies Act, 2013 read with Regulation 2B of

Liquidation Regulations, 2016. Thus, the insistence of Liquidator and

defense taken by the Liquidator in reply to I.A. (IB) No.975/KB/2023 that

he is entitled to fee of Rs.23,01,000/- is wholly erroneous and unsupported

by any statutory scheme.

18. The learned Counsel for the Appellant contended that in event the

Scheme Proponent is not saddled with liquidation fee and cost, non-serious

Scheme Proponent will be encouraged and shall be wasting time of the

liquidation. The consideration of the scheme submitted by a Scheme

Proponent for comprise or arrangement is governed by statutory

provisions, which is required to be completed within 90 days of the order

of liquidation as per Regulation 2B. The statutory provision itself provide

a period for completion of the process, hence, it cannot be said that the

said provision can be misused by a Scheme Proponent. Further, as per

Regulation 2B, the Scheme Proponent is liable to pay the cost, if the

Scheme is not sanctioned. Thus, a Scheme Proponent, who according to

the Appellant is non-serious can be saddled with the cost, which may be a

deterrent factor for any non-serious Scheme Proponent to submit a

Scheme. We, thus are of the view that submission of the Appellant that

Scheme Proponent should be saddled with liquidation fee is clearly

contrary to the statutory scheme. Further, the definition of 'liquidation

Company Appeal (AT) (Insolvency) No.1473 of 2023 15 cost' as contained in Regulation 2(ea) clearly provides that cost incurred by

the Liquidator in relation to compromise or arrangement under Section 230

of the Companies Act, if any, shall not form part of liquidation cost. The

said provision when read with Regulation 2B, clearly makes it clear that

cost incurred with regard to compromise or arrangement has to be borne

by the Corporate Debtor or Scheme Proponent. However, the said provision

does not indicate that the Liquidator is not entitled to claim his fee during

the period compromise or arrangement is under consideration. Since the

Liquidator is entitled for his fee as per the provision of Section 34, sub-

sections (8) and (9) and Regulation 4, it cannot be said that Liquidator is

left high and dry with regard to his fee during the period compromise or

arrangement is under consideration. However, whether Liquidator is

entitled to fee beyond the period of 90 days for completion of compromise

or arrangement is a different question, which need no answer in the present

Appeal.

19. We, thus, are fully satisfied that the Adjudicating Authority

committed no error in directing the Liquidator to refund fee, which was

wrongly realized from the Respondent. The Appellant himself has brought

on record various emails and reminders sent by the Liquidator to

Respondent where Liquidator has asked Respondent No.1 to make various

payments and the payments were made. According to the Liquidator

himself these were the payments towards fee of the Liquidator. We may

refer to email dated 02.08.2021 sent by the Liquidator to the Respondent

wherein in paragraphs 3, 4 and 5, following has been stated:

Company Appeal (AT) (Insolvency) No.1473 of 2023 16

3. In Para 9.4 of the scheme submitted by you, you have indicated the final shareholding pattern of the Corporate Debtor after implementation of the scheme. However, you have not indicated the treatment of the existing shares of the Corporate Debtor, i.e. whether the existing shares will be transferred to you, or will they be extinguished and you shall be issued new shares. Request you to clarify the same in the same undertaking as required in Para (1) of this email.

4. You have already paid Rs.7,88,280 pertaining to the liquidation costs and fee of the liquidator for the anticipated 90 day period of the scheme of compromise and arrangement. However, since the scheme is taking longer to be approved by the Adjudicating Authority, we call upon you to contribute the fee of the liquidator for the period 24.05.2022 - 23.09.2022 as indicated in regulation 4(2)(a) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 ("Liquidation Regulations") @ Rs.1.50 lacs per month plus GST amounting to Rs.7.08 lacs.

5. As discussed in our mail dt. 21.03.2022, in compliance with Rule 3(6)(b) of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, please make the deposit as required to the bank account being operated by the Liquidator. The estimated amount of deposit as evaluated by the Liquidator on the basis of the proposal submitted by you is as follows:

Company Appeal (AT) (Insolvency) No.1473 of 2023 17 CIRP Costs Rs.11,70,302 As given in the Secured Financial Creditors Rs.1,50,00,000 proposal TOTAL Rs.1,61,80,302 Amount to be deposited Rs.80,85,151"

20. Thus, the Liquidator asked Respondent No.1 to pay his liquidation

fee and has claimed the fee.

21. We, thus, are satisfied that Liquidator was not entitled to claim any

liquidation fee from Respondent for the period during which compromise

and arrangement scheme was under consideration. As noted above in

paragraph 14 of the reply, the Liquidator has claimed a fee of

Rs.23,01,000/-, which is clearly unsustainable. Liquidator in paragraph

14 has given the details of all expenses and fee payable totaling to

Rs.24,12,172. At the highest, the Liquidator was entitled to expenses.

Thus, even if we allow all expenses claimed in paragraph 14 of the reply of

the Liquidator, he was not entitled to a fee of Rs.23,01,000/- and after

deducting the amount of Rs.23,01,000/- in total amount, the Liquidator at

best is entitled for amount of Rs.1,11,172/- towards all expenses claimed

by the Liquidator.

22. In view of the foregoing discussions and our conclusion, we are of

the view that the Adjudicating Authority has rightly directed the Liquidator

to refund of the amount. As observed above, the Liquidator at best is

entitled to expenses as claimed by him in the liquidation process and if the

amount of all expenses claimed by the Liquidator are deducted, still the

Liquidator is liable to refund the amount of Rs.22,77,108/-, as per his own

Company Appeal (AT) (Insolvency) No.1473 of 2023 18 calculation. We, thus, are of the view that direction to refund the amount

of Rs.23,88,280/- be modified for refund of the amount of

Rs.22,77,108/-. Ordered accordingly.

23. From the facts which have been noticed and the manner in which

the Liquidator has conducted the liquidation process, raises question on

understanding of the liquidation process, liquidation regulations and the

manner in which the Liquidator has demanded liquidation fee from the

Scheme Proponent. We are of the view that copy of this order be forwarded

by the Registry of this Tribunal to the Insolvency and Bankruptcy Board of

India for information and appropriate action.

24. Subject to what has been directed above, the Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

NEW DELHI

8th December, 2023

Ashwani

Company Appeal (AT) (Insolvency) No.1473 of 2023 19