Adjudicating Authority has the power to dismiss the Liquidator since it is vested with the powers under Section 33 and 34 of IBC, 2016 to appoint a Liquidator, read with Section 16 of the General Clauses Act, 1897 read with Section 276 of the Companies Act, 2013 – IDBI Bank Ltd. Vs. Shri. V.Venkata Sivakumar Liquidator of M/s. The Jeypore Sugar Company Ltd. – NCLT Chennai Bench
In this case, the applicant contends that the Liquidator(respondent) did not possess a valid Authorisation for Assignment as required by the IBBI Regulation as on the date of appointment as the Liquidator, and therefore seeks the removal of the respondent as the Liquidator and to declare all the duties and functions performed as the Liquidator as null and void.
The Adjudicating Authority held that a conjoint reading of Section 33 of IBC, 2016 with Section 16 of the General Clauses Act, 1897 would show that the Authority which has the power to appoint a person, equally has the power to suspend or dismiss that person, in the absence of any specific powers conferred thereto. Thus, by virtue of Section 16 of the General Clauses Act, 1897 it clear that this Adjudicating Authority has the power to dismiss the Liquidator since this Authority is vested with the powers under Section 33 and 34 of IBC, 2016 to appoint a Liquidator. In the absence of the specific provisions under the IBC, 2016 we may resort to Section 276 of the Companies Act, 2013. The Section 276 of the Companies Act, 2013 would manifest the fact that the Liquidator can be removed under some circumstances.
