Mr. Yogesh Sethi Liquidator of M/s. SSMP Industries Ltd. Vs. Punjab National Bank & Ors. – NCLT New Delhi Bench Court-III

I. Case Reference Case Citation : (2023) ibclaw.in 407 NCLT Case Name : Mr. Yogesh Sethi Liquidator […]

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I. Case Reference

Case Citation : (2023) ibclaw.in 407 NCLT
Case Name : Mr. Yogesh Sethi Liquidator Vs. Punjab National Bank & Ors.
Corporate Debtor : M/s. SSMP Industries Ltd.
Application/Appeal No. : IA-5671/2021 in (IB) – 495(ND)/2017
Judgment Date : 27-Jul-23
Court/Bench : NCLT New Delhi Bench Court-III
Member (Judicial) : Shri Bachu Venkat Balaram Das
Member (Technical) : Shri Atul Chaturvedi
Case Status : Yogesh Sethi (Liquidator) v. Punjab National Bank and Ors. (2025) ibclaw.in 76 NCLAT

II. Brief about the decision

This Application was filed before this Adjudicating Authority under Rule 11 of the National Company Law Tribunal Rules, 2016 read with Regulation 2(A) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016, on behalf of Liquidator against Respondent Bank with a prayer to direct Respondent Bank to clear outstanding Liquidation cost of Appx. Rs. 45 Lakh and to Permit the Applicant to use Sale Proceeds of Rs. 15.85 Lakh of Car Disposed of in Liquidation.

We are of the opinion that since the initiation of the liquidation, process, the stakeholder committee and the Liquidator have been in dispute with regard to the payment of the liquidator fees and the liquidation cost.

After considering the facts and circumstances of the present case, we observe that the liquidator has failed to fulfil the duties as assigned to it under the code as the liquidator is only interested in the payment of liquidator fees and has been continuously interested in delaying the liquidation process. In the peculiar facts and circumstances of the present case, we are of the considered view that the matter needs to be referred to the Insolvency and Bankruptcy Board of India (IBBI) for proper scrutiny and audit of the expenses incurred under liquidation as prayed by the Respondent.

The IBBI is directed to submit the status report within Two (2) months from the pronouncement of this Order, giving the details of the liquidation cost regarding the Liquidator’s fee in order to complete the liquidation process. The IBBI is at liberty to check or scrutinize all the bills or vouchers raised by the Liquidator in order to complete the liquidation process and to form a rational opinion regarding the expenses incurred by the Liquidator in order to complete the liquidation process. In light of the above facts and circumstances, the Application bearing IA-5671/20221 is dismissed.

 

III. Full text of the judgment

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