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TMI Blog2022 (2) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... tion costs only after the realisation of its security interest and once monies are received by it. The contention of the Applicant in respect of its liability to pay its share of liquidation costs in terms of the impugned letter dated 18.07.2021 is rejected. It is not in dispute that the Applicant is a claimant and its claim also admitted to an extent of ₹ 33,64,47,700/-. We have already held herein above that the Applicant whose claims are admitted by the Liquidator to the said extent, is liable to pay its share of the liquidation costs without reference to the date of admission of its claims and without reference to the monies to be received by it - though the Applicant has chosen to stand outside the liquidation proceedings and to realise its security interest, and not a stakeholder, it is also entitled for the same information and documents as entitled by a stakeholder of the liquidation process. Therefore, the Liquidator is liable to share the information and furnish the documents to the Applicant, on par with any other stakeholder of the liquidation process. The various reliefs claimed with regard to the liability of the Applicant to pay its share of the costs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncial Creditor resolution of the committee of creditors of Biodiversity Conservation India Private Limited under Regulation 39-D of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process of Corporate Persons) Regulations, 2016, if any; viii.) Direct the Respondent to share with the Financial Creditor details of amounts realised and amounts distributed to all stakeholders in the liquidation of the Corporate Debtor till date and going forward in the liquidation of Biodiversity Conservation India Private Limited. ix.) Direct the Respondent to share with the Financial Creditor a copy of the asset memorandum prepared in the liquidation of Biodiversity Conservation India Private Limited including the asset memorandum as may be amended from time to time in the liquidation of the Biodiversity Conservation India Private Limited. x.) Direct the Respondent to share with the Financial Creditor a copy of all progress reports prepared in the liquidation of Biodiversity Conservation India Private Limited thus far and all future progress reports as may be prepared in the liquidation of the Biodiversity Conservation India Private Limited. xi.) Pass any furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urity interest and once monies are received by it. 6. The learned Counsel appearing for the Respondent-Liquidator on the other hand submits that first proviso to Regulation 21A(2)(b) of the IBBI (Liquidation Process) Regulations, 2016 is not applicable to the facts of the case; whereas Section 53(1)(a) of the I B Code, 2016 is applicable to the Applicant and hence it is liable to pay the costs as determined by the Liquidator. 7. In this view of the matter, it is necessary to refer to the relevant Provisions/Regulations on which the learned Counsel placed reliance: Section 53 of I B Code, 2016: 53. Distribution of assets. - (1) Notwithstanding anything to the contrary contained in any law enacted by the Parliament or any State Legislature for the time being in force, the proceeds from the sale of the liquidation assets shall be distributed in the following order of priority and within such period as may be specified, namely:- (a) the insolvency resolution process costs and the liquidation costs paid in full; (b) the following debts which shall rank equally between and among the following: (i) workmen's dues for the period of twenty four months pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te its decision within thirty days from the liquidation commencement date, the assets covered under the security interest shall be presumed to be part of the liquidation estate. (2) Where a secured creditor proceeds to realise its security interest, it shall pay- (a) as much towards the amount payable under clause (a) and sub-clause (i) of clause (b) of sub-section (1) of section 53, as it would have shared in case it had relinquished the security interest, to the liquidator within ninety days from the liquidation commencement date; and (b) the excess of the realised value of the asset, which is subject to security interest, over the amount of his claims admitted, to the liquidator within one hundred and eighty days from the liquidation commencement date: Provided that where the amount payable under this sub-regulation is not certain by the date the amount is payable under this sub-regulation, the secured creditor shall pay the amount, as estimated by the liquidator: Provided further that any difference between the amount payable under this sub-regulation and the amount paid under the first proviso shall be made good by the secured creditor or the liquidato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for the minutes of the stakeholder committee meetings, which is contained in Regulation 5(1)(e). While ordinarily, the Applicant, as a stakeholder, would have been entitled to these documents, the Applicant has chosen to stand outside the liquidation proceedings, and realize its security interest. Under Regulation 31 A, the Applicant, therefore, is not a member of the stakeholders' committee. Therefore, it is submitted that the Applicant is not entitled to these documents. 34. The other documents mentioned under paragraph 39 of the Application are instead covered by Regulation 6 of the Liquidation Regulations. Unlike in Regulation 5, there is no provision permitting stakeholders to access these documents. Indeed, it cannot be so, given that all these documents pertain to the day-to-day running of the Corporate Debtor. No creditor can have a right to access these documents, and indeed, if one creditor is permitted, all creditors would make similar requests. 35. The Applicant's reliance on Section 39 of the IBC is misplaced. The provision clearly states that 'financial information' is to be shared with a creditor in such manner as may be specified. The spe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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