# In the matter of Servalakashmi Paper Ltd. MA-677-2019 in CP-514-IB-2017

> NCLT judgment dated 2019-07-31. Citation: TCN-2019-NCLT-02195. The case involves an application (MA/677/2019) in a corporate insolvency resolution process…

- **Court:** NCLT
- **Order date:** 31 Jul 2019
- **Citation:** TCN-2019-NCLT-02195
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/servalakashmi-paper-ltd-ma-677-2019-in-cp-514-ib-2017-a2adbddf

## Summary

### Background

The case involves an application (MA/677/2019) in a corporate insolvency resolution process (CP/514/IB/2017). The liquidator and his counsel are present. The applicants who filed schemes seek a direction to include the liquidator's fee as per Regulation 4(3) of the IBBI (Liquidation Process) Regulations, 2016, and the professional fee as per Regulation 7 of the same regulations, as part of the liquidation cost under Section 230 of the Companies Act, 2013.

## Facts

The liquidator, S Dhanapal, of Servalakshmi Paper Ltd, is seeking a direction to include his fees and professional fees in the liquidation cost as per IBBI regulations. The application is MA/677/2019 in CP/514/IB/2017. The liquidator's counsel is present. One of the applicants who filed a scheme is represented by Mr. Ravi Rajagopalan. The liquidator is directed to present the proposal to the CoC and verify the company's assets.

## Issues and analysis

### Issue 1: Whether the applicants who have filed the Schemes should include the Liquidator's fee as per …

**Ratio:** Regulation 4(3) and Regulation 7 of the IBBI (Liquidation Process) Regulations, 2016, and

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**Reasoning:** The court found the submission regarding the inclusion of fees plausible and directed the

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**Interpretation:** The court interpreted the relevant regulations and section to allow for the

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**Application:** The court applied the regulations and section to the specific facts by

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## Parties

- **Judges:** CH. MOHD SHARIEF…; Anil Ku…
- **Appellants:** S DHANAPAL…
- **Respondents:** SERVALAKSHMI…

## Timeline

- **2017-01-01 — Petition…**: CP/514/IB/2017 petition…
- **2019-07-31 — Order Da…**: Order passed directing liquidator to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 230 — Delegation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-230)

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