# In the matter of Reid & taylor (India) Ltd. 05,75,251,690 & 937-2019 In C.P. (IB)-382-MB-2018

> NCLT judgment dated 2019-04-11. Citation: TCN-2019-NCLT-03955. The case pertains to the insolvency resolution of Reid & Taylor (India) Ltd. under Section 9 of…

- **Court:** NCLT
- **Order date:** 11 Apr 2019
- **Citation:** TCN-2019-NCLT-03955
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/reid-taylor-india-ltd-0575251690-937-2019-in-cp-ib-382-mb-2018-9b0cba5b

## Summary

### Background

The case pertains to the insolvency resolution of Reid & Taylor (India) Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016. The company was ordered for liquidation on February 5, 2019, as an ongoing concern. The court appointed a liquidator to oversee the process. However, concerns were raised by aggrieved citizens regarding the liquidator's actions, alleging that the liquidator was expediting the liquidation process to benefit certain vested interests, particularly Mr. Bharat J. Patel of Finquest Financial Solutions Pvt. Ltd., a financial creditor of the corporate debtor. Anonymous letters were received by the Members of the tribunal expressing these concerns.

## Facts

Reid & Taylor (India) Ltd. is undergoing liquidation under the Insolvency and Bankruptcy Code, 2016. The liquidation was ordered on February 5, 2019. Mr. Ravishankar Devarakonda was appointed as the liquidator. Aggrieved citizens raised concerns about the liquidator's actions, alleging bias towards RNT Distributors, a company linked to Mr. Bharat J. Patel of Finquest Financial Solutions Pvt. Ltd., a financial creditor. They claimed the liquidator was expediting liquidation to benefit vested interests, ignoring other potential investors like Reliance Industries. RNT Distributors is allegedly receiving preferential treatment, with job work charges below market price. Finquest Financial has claimed a large amount as a financial credit. The corporate debtor was

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## Issues and analysis

### Issue 1: Whether the liquidator is acting in a biased manner to benefit certain vested interests during the …

**Ratio:** The principle of fairness and transparency in insolvency proceedings requires that all

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**Reasoning:** The court acknowledges the concerns raised by the aggrieved citizens regarding the

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**Interpretation:** This issue involves interpreting the duties and responsibilities of a

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**Application:** The court will need to examine the actions of the liquidator, including the

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Reid Taylor (…

## Timeline

- **2019-02-05 — Liquidation…**: The Hon'ble Bench ordered for liquidation of Reid & Taylor (India) Limited as an ongoing…
- **2019-04-11 — Matter L…**: The Bench listed the matter for April 11th, when any interested parties suggested by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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