# In the matter of Ravishankar Choudhary Vs.
Saradidnu Jena Company Appeal (AT) (Insolvency) No. 764 of 2022

> NCLAT judgment dated 2022-07-12. Citation: TCN-2022-NCLAT-00372. The appeal was filed against the order passed by the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 12 Jul 2022
- **Citation:** TCN-2022-NCLAT-00372
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ravishankar-choudhary-vs-saradidnu-jena-company-appeal-7b815082

## Summary

### Background

The appeal was filed against the order passed by the Adjudicating Authority (National Company Law Tribunal), Cuttack Bench, which rejected an application filed by the Appellant, a member of the Stakeholders' Consultation Committee, under Rule 11 of the NCLT Rules 2016. The Corporate Debtor was insured, and an insurance claim was submitted after a fire. An insurance claim of Rs.4,07,08,081 was accepted and paid to the Corporate Debtor. The CIRP process was initiated, and the Liquidator appointed two surveyors to determine if a further claim should be pursued before the Consumer Forum. After receiving the surveyor reports, the Resolution Professional decided not to pursue any further claim on behalf of the Corporate Debtor.

## Facts

The Corporate Debtor was insured under a 'Standard Fire and Special Perils Policy'. A fire broke out in the Corporate Debtor's premises, leading to an insurance claim. An insurance claim of Rs.4,07,08,081 was accepted and paid to the Corporate Debtor. The CIRP process was initiated. The Liquidator appointed two surveyors to assess whether a further claim should be pursued before the Consumer Forum. The Resolution Professional decided not to pursue any further claim after reviewing the surveyor reports. The Appellant, a member of the Stakeholders' Consultation Committee, filed an application to set aside the Liquidator's decision and direct the Liquidator to initiate legal proceedings against the Insurance Company for the recovery of the balance insurance claim amount

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## Issues and analysis

### Issue 1: Whether the decision of the Liquidator not to initiate legal proceedings against the Insurance …

**Ratio:** The Liquidator is statutorily empowered under Section 35 of the I&B Code to take

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**Reasoning:** The court reasoned that the Liquidator had statutory power and had taken the decision

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**Interpretation:** Section 35 of the I&B Code grants the Liquidator the discretion to decide

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**Application:** The Liquidator, having considered the surveyor reports and other materials,

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Ravishankar…
- **Respondents:** Saradidnu…

## Timeline

- **2022-05-09 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Cuttack Bench, passed an…
- **2022-07-12 — Hearing of th…**: The court heard the learned…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35 — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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