This judgment addresses the appropriate calculation of the Liquidator's fees in the liquidation of Ethnic Tobacco (India) Ltd. The Liquidator had been drawing a fixed monthly fee of Rs.2 Lakhs, purportedly based on a Stakeholders Consultation Committee (SCC) resolution. However, the Adjudicating Authority's original liquidation order mandated that the Liquidator's fee be determined as per Section 34(8) of the IBC and Regulation 4(2)(b) of the IBBI (Liquidation Process) Regulations, which links fees to the value of realised assets and distributed amounts. The Adjudicating Authority found that the Liquidator had incorrectly claimed and drawn fees, failing to disclose the prior fee determination order and providing factually incorrect information to the SCC regarding an
…The National Company Law Tribunal, Amaravati Bench, heard applications related to the liquidation of Ethnic Tobacco (India) Ltd.
State Bank of India is the Petitioner/Financial Creditor, and Ethnic Tobacco (India) Ltd is the Respondent/Corporate Debtor.
The Corporate Debtor was ordered to be liquidated, and a Liquidator was appointed by the Adjudicating Authority's order dated 27.03.2023 in C.P. (IB) No. 30/7/AMR/2021.
The Adjudicating Authority's order dated 27.03.2023, paragraph 4(h), specified that the Liquidator's fee would be as determined by the Board in terms of Section 34(8) of the IBC.
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This judgment addresses the appropriate calculation of the Liquidator's fees in the liquidation of Ethnic Tobacco (India) Ltd. The Liquidator had been drawing a fixed monthly fee of Rs.2 Lakhs, purportedly based on a Stakeholders Consultation Committee (SCC) resolution. However, the Adjudicating Authority's original liquidation order mandated that the Liquidator's fee be determined as per Section 34(8) of the IBC and Regulation 4(2)(b) of the IBBI (Liquidation Process) Regulations, which links fees to the value of realised assets and distributed amounts. The Adjudicating Authority found that the Liquidator had incorrectly claimed and drawn fees, failing to disclose the prior fee determination order and providing factually incorrect information to the SCC regarding an
…The National Company Law Tribunal, Amaravati Bench, heard applications related to the liquidation of Ethnic Tobacco (India) Ltd.
State Bank of India is the Petitioner/Financial Creditor, and Ethnic Tobacco (India) Ltd is the Respondent/Corporate Debtor.
The Corporate Debtor was ordered to be liquidated, and a Liquidator was appointed by the Adjudicating Authority's order dated 27.03.2023 in C.P. (IB) No. 30/7/AMR/2021.
The Adjudicating Authority's order dated 27.03.2023, paragraph 4(h), specified that the Liquidator's fee would be as determined by the Board in terms of Section 34(8) of the IBC.
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