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2021 (11) TMI 467 - Tri - Insolvency and BankruptcyExclusion of period allowed for restructuring the corporate debtor from Liquidation - exclusion of fee of the Liquidator as per regulation 4(2) (b) of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 excluding the period from 11th January 2021 to 28th July 2021 - HELD THAT - Taking into consideration of the present pandemic as also Regulation 2 B (2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2020, this application is disposed off, excluding the period from January 11th, 2021 to July 28th, 2021 from the Liquidation period of the Corporate Debtor in order to complete the Liquidation process, strictly following the IBBI Regulations. The fee of the Liquidator shall be calculated excluding the period from 11.01.2021 to 08.07.2021 following the IBBI Regulations. Application disposed off.
Issues:
- Exclusion of period for restructuring the corporate debtor from liquidation - Calculation of the fee of the Liquidator as per regulations Analysis: Issue 1: Exclusion of period for restructuring the corporate debtor from liquidation The Applicant, as the Liquidator of the Corporate Debtor, sought exclusion of the period from January 11, 2021, to July 28, 2021, from the liquidation process. The Applicant mentioned that the suspended board of directors of the Company had proposed a plan to restructure the Company under Section 230 of the Companies Act, 2013, within 90 days from the commencement of liquidation. However, the promoters failed to present a restructuring proposal within the stipulated period. The Tribunal had previously granted an extension of 30 days for the directors to clear off dues to creditors for restructuring, but they could not meet the deadline. Citing Regulation 2 B (2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2020, which allows excluding the time taken for compromise or arrangement not exceeding ninety days from the liquidation period, the Tribunal decided to exclude the period in question to complete the liquidation process in compliance with the regulations. Issue 2: Calculation of the fee of the Liquidator as per regulations The Applicant also requested the Tribunal to calculate the fee of the Liquidator in accordance with Regulation 4(2)(b) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, excluding the period from January 11, 2021, to July 28, 2021. The Tribunal, after considering the facts, circumstances, and the impact of the pandemic, decided to dispose of the application by excluding the specified period from the liquidation process. The fee of the Liquidator was directed to be calculated following the IBBI Regulations, excluding the mentioned period. This decision aimed to ensure the completion of the liquidation process while adhering to the regulatory framework. In conclusion, the Tribunal, in its order dated October 21, 2021, granted the reliefs sought by the Applicant, excluding the period for restructuring the corporate debtor from liquidation and directing the calculation of the Liquidator's fee in accordance with the applicable regulations.
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