The case involves an appeal against an order by the National Company Law Tribunal (NCLT), Chandigarh, concerning the fees eligible to the liquidator of Punjab Basmati Rice Ltd., which is under liquidation. The NCLT had allowed an application by the liquidator and dismissed an application by the Stakeholders Consultation Committee. The dispute centers on the time period taken by the liquidator in realizing and distributing assets, considering exclusions and stays granted by the Adjudicating Authority.
Punjab Basmati Rice Ltd. underwent Corporate Insolvency Resolution Process (CIRP) initiated under Section 10 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted by NCLT, Chandigarh on 2019-02-18. Due to the absence of a viable resolution plan, a liquidation order was passed on 2019-12-18. The liquidator attempted to sell assets through auction, and the liquidation estate was eventually sold via open auction on 2023-04-01 for Rs.26.77 Crores against a reserve price of Rs.25.00 Crores. The core dispute concerns the liquidator's fees, governed by Regulation 4 of the IBBI (Liquidation Process) Regulations, 2016. The Stakeholders Consultation Committee and the liquidator disagree on the total liquidation period, which affects the applicable fee percentage.
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Impugned…
Corporate Insolvency…
The case involves an appeal against an order by the National Company Law Tribunal (NCLT), Chandigarh, concerning the fees eligible to the liquidator of Punjab Basmati Rice Ltd., which is under liquidation. The NCLT had allowed an application by the liquidator and dismissed an application by the Stakeholders Consultation Committee. The dispute centers on the time period taken by the liquidator in realizing and distributing assets, considering exclusions and stays granted by the Adjudicating Authority.
Punjab Basmati Rice Ltd. underwent Corporate Insolvency Resolution Process (CIRP) initiated under Section 10 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted by NCLT, Chandigarh on 2019-02-18. Due to the absence of a viable resolution plan, a liquidation order was passed on 2019-12-18. The liquidator attempted to sell assets through auction, and the liquidation estate was eventually sold via open auction on 2023-04-01 for Rs.26.77 Crores against a reserve price of Rs.25.00 Crores. The core dispute concerns the liquidator's fees, governed by Regulation 4 of the IBBI (Liquidation Process) Regulations, 2016. The Stakeholders Consultation Committee and the liquidator disagree on the total liquidation period, which affects the applicable fee percentage.
…Impugned…
Corporate Insolvency…