9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (6) TMI 54 - HC - Insolvency and BankruptcySeeking a direction to the IBBI to take appropriate steps against the Liquidator - seeking to issue appropriate guidelines and due process for dealing with the actions of the Insolvency professionals who are suspended by the Disciplinary Committee of the IBBI - HELD THAT - As far as charge of contravention of prescribing non-refundable participation fee of Rs. 5,00,000/-, Rs. 10,00,000/-, Rs. 10,00,000/- and Rs. 50,000/- vide public announcements made on 17.09.2019, 27.09.2019, 21.10.2019 and 11.11.2019 is concerned, this Court vide Judgment dated 27.05.2024 has exonerated Mr. Sundaresh Bhat of the said charges. However, Mr. Sundaresh Bhat has been found guilty only of charge of paying excess fee to a support service called BDO Restructuring Advisory LLP. This Court has not interfered with the findings of the IBBI on this charge but has modified the order of suspension to the period undergone. Petition dismissed.
Issues:
1. Direction sought against the Insolvency and Bankruptcy Board of India (IBBI) regarding the suspension of the Liquidator. 2. Allegations of misconduct by the Liquidator in the process of liquidation of the Corporate Debtor. 3. Exoneration of the Liquidator from certain charges but found guilty of paying excess fee to a support service. 4. Modification of the order of suspension of the Liquidator. Analysis: 1. The Petitioner approached the Court seeking a direction against IBBI regarding the suspension of the Liquidator and the need for appropriate guidelines for dealing with suspended Insolvency professionals. The Petitioner challenged the actions of the Liquidator, who was suspended by the Disciplinary Committee of IBBI. The Court examined the facts leading to the Writ Petition, which involved the liquidation process of a Corporate Debtor and the conduct of the Liquidator. 2. The Liquidator was appointed for the Corporate Debtor, and various auction processes were conducted to dispose of the assets, which eventually led to a Swiss Challenge Process. The Petitioner participated in the bidding process and was declared as the anchor bidder. Subsequently, another bidder made a higher offer, leading to the cancellation of the Swiss Challenge Process by the NCLT. This decision was challenged by the Petitioner in different appellate forums, including the NCLAT and the Apex Court. 3. The Court addressed specific charges against the Liquidator, including allegations of prescribing non-refundable participation fees and paying excess fees to a support service. The judgment exonerated the Liquidator from certain charges related to participation fees but found him guilty of paying excess fees to the support service. The Court upheld the findings of IBBI on this charge but modified the suspension order to the period already undergone by the Liquidator. 4. Ultimately, the Court dismissed the Writ Petition, along with any pending applications, based on the findings related to the charges against the Liquidator. The judgment highlighted the exoneration from certain charges but upheld the guilt in paying excess fees, leading to a modification in the suspension order. The decision provided clarity on the legal aspects surrounding the actions of the Liquidator and the disciplinary measures taken by IBBI.
|
