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TMI Blog2022 (8) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... /- each in the account of the liquidator. One of the financial institutions SBI has already deposited the above-said amount. The liquidation value is reported to be less than the liquidation cost. As a result, as per regulation 2A of the IBBI (Liquidation Process) regulation, 2016 the remaining amount of the liquidation cost which is not paid to the liquidator has to be paid by the financial creditor to the liquidator. The liquidation cost as quantified in the application should be paid to the liquidator within 7 days from today - application allowed. - IA/137/2021 in CP(IB)/43/MP/2020 - - - Dated:- 21-7-2022 - M. B. Gosavi , Member ( J ) And Kaushalendra Kumar Singh , Member ( T ) For the Appellant : Party - in - Person F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets of the Corporate Person considering that no assets are available with the Corporate Person. ii. Under Regulation 27 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 Resolution Professional was obligated to appoint a registered valuer to determine the fair value and liquidation value of the Corporate Person. However, in the 2nd COC meeting dated 06.08.2020, the COC members were of the view that as there are no assets available as per the balance sheet of the Corporate Person for the Financial Year 2018-19, hence the appointment of a valuer was not required and that would only increase the cost of CIRP proceedings, hence the appointment of valuer was not feasi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a plan for the contribution of cost when the liquidation value was less than the liquidation cost, and the Resolution Professional had to submit it before the Adjudicating Authority for approval. However, no such plan was prepared by the COC and submitted before the Adjudicating Authority, although the liquidation cost as per their own estimation was in excess of the liquidation value. Further, the Resolution for fixing of liquidation fee has not been passed by the COC. vii. The applicant carrying out the liquidation process of the Corporate Person called its first stakeholders consultation committee (SCC) meeting on 05.07.2021 which was attended by the representative of the Respondents. During the said meeting discussion and delibera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i. In the situation when the Corporate Person lacked any assets, the liquidator went on incurring outside professional fees for vetting of asset memorandum. ii. Even after the knowledge of the fact that there doesn't even exist a sight of recovery in the liquidation for the Corporate Person, the liquidator has raised invoices worth Rs. 1,13,000/- for unnecessary expenses on the financial creditors. iii. The liquidator is also demanding payments of its employees whose no record of service, name, payroll, purpose of engagement, etc. had ever been communicated with the financial creditors by the liquidator. iv. When the liquidator is aware of the facts and situation that are underlying the instant liquidation process, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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