# In the matter of Ashok Kumar Gulla vs. State Bank of India & Ors.

> NCLAT judgment dated 2024-04-10. Citation: TCN-2024-NCLAT-00518. The appeal was filed by the liquidator of SRS Limited against the order dated 18.04.2023 of…

- **Court:** NCLAT
- **Order date:** 10 Apr 2024
- **Citation:** TCN-2024-NCLAT-00518
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ashok-kumar-gulla-vs-state-bank-of-india-ors-f13720c9

## Summary

### Background

The appeal was filed by the liquidator of SRS Limited against the order dated 18.04.2023 of the National Company Law Tribunal (NCLT), Chandigarh, regarding IA No. 307 of 2021 and IA No. 1260 of 2022 in CP (IB) No. 201/CHD/2018. The liquidator sought the tribunal to fix his remuneration, citing difficulties in selling the corporate debtor's assets due to attachments by the Enforcement Directorate (ED) and Income Tax Department (ITD). The NCLT had dismissed the liquidator's applications, leading to the present appeal.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated on 21.08.2018, and liquidation commenced on 15.10.2019, with Ashok Kumar Gulla appointed as the liquidator of SRS Ltd. (Corporate Debtor). After inviting claims and forming a Stakeholders' Consultation Committee (SCC), the liquidator issued a public advertisement on 13.12.2019, seeking Expressions of Interest for a compromise or arrangement scheme. However, the sale of the corporate debtor as a going concern was hindered because the assets were attached by the Enforcement Directorate (ED) on 08.01.2020 and the Income Tax Department (ITD) provisionally attached the cinema assets on 20.12.2018. The Income Tax Attachment Order was vacated on 12.01.2021, and the liquidator advertised the sale of cinema at 12

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## Issues and analysis

### Issue 1: Whether the liquidator is entitled to a fixed remuneration despite the assets of the corporate …

**Ratio:** Regulation 4(2)(b) of the IBBI Liquidation Process Regulations, 2016, prescribes that the

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**Reasoning:** The court reasoned that the regulations in effect at the time of the liquidation order

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**Interpretation:** The court interpreted Regulation 4(2)(b) to mean that the liquidator's fees are

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**Application:** The court applied the ratio to the specific facts of the case, noting that the

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## Parties

- **Judges:** Rakesh Kuma…; Ajai Das Me…
- **Appellants:** Ashok Kumar…
- **Respondents:** SRS Lim…; State Bank of…

## Timeline

- **2018-08-21 — CIRP Init…**: Corporate Insolvency…
- **2019-10-15 — Liquidation Com…**: Liquidation commenced, with Ashok…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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