Whether the Code provides for any provisions for process of removal of Liquidator on an Application made by Financial Creditor(s)/ Member(s) of erstwhile CoC? – IFCI Limited Vs. M/s. BS Limited – NCLT Hyderabad Bench
A reference to section 34, reveals that sub section (4) deals with replacement of RP in three situations as enumerated in clauses (a), (b) and (c) therein. It therefore does not deal with replacement or removal of the Liquidator at the instance of Creditors/claimants. As far as Sub-section (7) is concerned, it relates to the power of this Adjudicating Authority to appoint an Insolvency Professional as a Liquidator on receipt of recommendation for such appointment from the Board. This subsection also does not provide for replacement or removal of the Liquidator at the instance of Creditors/ claimants. In the instant case, Mr. Yadavilli Sai Karunakar was appointed as Liquidator on 25.10.2019, on the recommendations of IBBI vide its letter No. IP-13011/1 599/5044 Dated 24.10.2019. Therefore, the legal provisions under which this Application has been sought to be filed are not relating to replacement or removal of the Liquidator.
