# IA (LIQ) Progress Report)/56/2026, IA (LIQ) Progress Report)/37/2026, IA (IBC)/314/2026 in CP (IB)/30/7/AMR/2021

> NCLT judgment dated 08.09.2026. Citation: TCN-2026-NCLT-01156. This judgment addresses the appropriate calculation of the Liquidator's fees in the liquidation…

- **Court:** NCLT
- **Order date:** 9 Aug 2026
- **Citation:** TCN-2026-NCLT-01156
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/ethnic-tobacco-india-ltd-xf0du

## Summary

### Background

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

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## Facts

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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## Issues and analysis

### Issue 1: Whether the Liquidator is entitled to a fixed monthly fee of Rs.2 Lakhs as determined by the …

**Ratio:** The Liquidator's fee is to be determined as per Section 34(8) of the IBC, 2016, and

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**Reasoning:** The Adjudicating Authority's liquidation order dated 27.03.2023 explicitly stated that

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**Interpretation:** The Adjudicating Authority's initial order regarding the Liquidator's

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**Application:** In this case, the SCC's decision to fix a monthly fee of Rs.2 Lakhs for the

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## Parties

- **Judges:** KISHORE VEMULAPALL…; UMESH KUMAR…
- **Appellants:** Kasi Sri…; State Bank of…
- **Respondents:** Ethnic Tobacco…
- **Other parties:** SCC…; CoC…; +1 more
- **Advocates:** Aishwarya…

## Timeline

- **13.09.2022**
- **27.03.2023**

## Legal provisions

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

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