As per Section 233 of the IBC, the liquidator is protected against any coercive action provided his act during CIRP is a bonafide – Liquidator of Varia Engineering work Ltd. Vs. Superintendent of Police of CBI – NCLT Ahmedabad Bench
August 8, 2021
The Liquidator of Varia Engineering work Ltd.(CD) filed an application directing the Superintendent of Police of CBI(respondent) not to proceed against him for the act which he has done during the CIRP period as the Liquidator. The Adjudicating Authority held that as per Section 233 of the IBC, the liquidator is protected against any coercive action provided his act during CIRP is a bonafide. The protection is available to the liquidator. It is also made clear that IBBI is the only Authority to look into and inquire into any allegation against the liquidator when he acted during the discharge of his duty as the Liquidator.