# In the matter of Varrsana Employee Welfare Association Vs. Anil Goel Liquidator,Company Appeal (AT)(Insolvency)No. 544 of 2021

> NCLAT judgment dated 2022-11-25. Citation: TCN-2022-NCLAT-00068. The appeal challenges the order dated 28th May 2021 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 25 Nov 2022
- **Citation:** TCN-2022-NCLAT-00068
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/varrsana-employee-welfare-association-vs-anil-goel-liquidatorcompany-appeal-1cb4ab60

## Summary

### Background

The appeal challenges the order dated 28th May 2021 passed by the National Company Law Tribunal, Kolkata Bench, regarding I.A. No. 1014/KB/2020 in C.P. (IB) No.- 543/KB/2017. The Varrsana Employee Welfare Association (Appellant) contested the Liquidator's decision not to include a representative of the workmen/employees in the Stakeholders Consultation Committee (SCC) of the Corporate Debtor, Varrsana Ispat Limited. The appellant argued that the liquidator should include a representative of the workmen/employees in the SCC, irrespective of whether the employees have a subsisting claim or not. The Adjudicating Authority had previously rejected the prayer for inclusion of a representative of the workmen and employees on the SCC, stating that the workers did not have a

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## Facts

Varrsana Employee Welfare Association, a registered employees' union, filed an appeal against an order passed by the National Company Law Tribunal (NCLT), Kolkata Bench. The appeal concerned the rejection of the association's request to include a representative of the workmen/employees in the Stakeholders Consultation Committee (SCC) of Varrsana Ispat Limited, the Corporate Debtor, which is undergoing liquidation. The association claimed that the liquidator wrongfully rejected their claims for a one-month notice period and that the liquidator had wrongfully included six financial creditors in the SCC, exceeding the maximum allowed. The liquidator argued that the association's claim was received after the list of stakeholders was prepared and that the employees' claims

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in refusing to include a representative of the workmen and …

**Ratio:** Regulation 31 of the Liquidation Regulations, 2016 requires the Liquidator to prepare a

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**Reasoning:** The NCLAT reasoned that Regulation 31 clearly specifies that 'the Liquidator shall

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**Interpretation:** The interpretation of Regulations 31 and 31-A of the Liquidation Regulations,

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**Application:** The NCLAT applied the regulations to the specific facts of the case, noting

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## Parties

- **Judges:** Anant Bijay…; Shreesha…
- **Appellants:** Varrsana Employee…
- **Respondents:** Varrsana Ispat…; Anil…
- **Advocates:** Rishav Ba…; Akshat…; +8 more

## Timeline

- **1950-01-01 — Bombay Public…**: A registered employees' union registered under Public Trust with Deputy Charity…
- **2019-10-05 — First Me…**: The first Meeting was conducted on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(7) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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