Seth Thakurdas Khinvraj Rathi vs M/S Cals Refineries Limited

Seth Thakurdas Khinvraj Rathi ...Appellant

Versus

Cals Refineries Ltd. Through Liquidator Sarita Joshi ...Respondent

Present: For Appellant: Ms. Sangeeta Bharti and Ms. Mehak Kanwar, Advocates. For Respondent:

ORDER

(Virtual Mode)

02.12.2021: Heard. This Appeal has been filed against order dated

28.09.2021 passed by the Adjudicating Authority (National Company Law

Tribunal), New Delhi Bench (Court - III) by which the Application filed by

Appellant has been rejected. The Appellant filed an application making I.A. No.

4267/2020 praying for orders under Section 60(5)(c) of the Insolvency and

Bankruptcy Code, 2016 (for short 'Code') to replace the current Liquidator Ms.

Sarita Joshi and further to reject the Application filed by the Liquidator for

dissolution of the Corporate Debtor. The Adjudicating Authority heard the

Applicant and held that there is no specific reason assigned by the Applicant to

seek change of the Liquidator. Hence, the prayer made in the Application for

change of the Liquidator cannot be accepted.

Cont'd..../ -2-

2. Learned Counsel for the Appellant submits that large number of funds was

siphoned off by the Corporate Debtor and investigation is already on by the SFIO.

Learned Counsel for the Appellant submits that Liquidator failed to discharge her

duties as mandated under law, hence, request for change was made. Learned

Counsel for the Appellant referred to the Application which is at page 97

(Annexre-A4) which was filed for change of the Liquidator.

3. We have looked into the Application filed by the Appellant wherein general

observations have been made that the Liquidator failed to exercise due care and

diligence in performing her functions as Liquidator. With regard to investigation,

the Adjudicating Authority has already observed that orders have been passed

calling for updated status report from the SFIO. The continuance of investigation

by the SFIO is already taken note of by the Adjudicating Authority and Reports

have been called for. However, that itself is not the ground for change of the

Liquidator. We find no error in the order of the Adjudicating Authority rejecting

Application of the Appellant for change of the Liquidator. There is no merit in the

Appeal. The Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Justice Jarat Kumar Jain] Member (Judicial)

[Dr. Alok Srivastava] Member (Technical) Archana/nn.

Company Appeal (AT) (Insolvency) No. 974 of 2021