Nomination of a Representative as to represent Shareholders-in-class in the Stakeholders Consultation Committee(SCC) of the Corporate Debtor cannot be rejected by the Liquidator on the ground that the said nomination was not made unanimously by all the shareholders – Vivek Shukla Vs. Mohan Lal Jain, Liquidator – NCLT New Delhi Bench Court-II
The Adjudicating Authority held that from perusal of the Regulation 31A(3), which reads as “The liquidator may facilitate the stakeholders of each class to nominate their representatives for inclusion in the consultation committee”, we observe that the said Regulation is silent on both “the criteria as well as process of nomination” of a Representative. However, the Regulation 31A(3) has bestowed a duty on the Liquidator to facilitate the stakeholders of each class to nominate their representatives for inclusion in the SCC. Therefore, the nomination of the Applicant as the Representative of Shareholders cannot be rejected by the Liquidator on the ground that the said nomination was not made unanimously by all the shareholders.
