Compliance of Regulations 2(ea), 2A, 21A and 37 of Liquidation Process Regulations and Section 52/53 of IBC are absolutely necessary even if the secured creditor proceeds to realise its security interest – Small Industries Development Bank of India (SIDBI) Vs. Shri Vijender Sharma – NCLAT New Delhi
NCLAT held that it thus becomes quite clear that compliance of regulations 2(ea), 2-A, 21-A and 37 of the Liquidation Process Regulations and Section 52/53 of the IBC are absolutely necessary even if the secured creditor proceeds to realise its security interest. The liquidator has carried out his responsibility with due diligence and without any prejudice to Appellant or any other stakeholder, and therefore, cannot be held responsible for delay that has taken place in pursuing the liquidation of the corporate debtor. Therefore, we come to the conclusion that the Adjudicating Authority has not committed any error in excluding period from 30.11.2018 to 24.2.2020 from the liquidation process for calculation of liquidator’s fees slab under Regulation 4 of the Liquidation Process Regulations. Being devoid of merit, the appeal is dismissed.
