# In the matter of SPM AUto Pvt. Ltd. IA No. 3570 of 2020 and CA-135-2019 Connected with IB-433-(ND)-2017

> NCLT judgment dated 2021-08-10. Citation: TCN-2021-NCLT-01390. The application was filed by the Liquidator, Vijender Sharma, regarding the ongoing liquidation…

- **Court:** NCLT
- **Order date:** 10 Aug 2021
- **Citation:** TCN-2021-NCLT-01390
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/spm-auto-pvt-ltd-ia-no-3570-of-2020-and-ca-135-2019-connected-with-ib-433-nd-201-64be44f2

## Summary

### Background

The application was filed by the Liquidator, Vijender Sharma, regarding the ongoing liquidation process of the corporate debtor, SPM Auto Private Limited. The liquidation order of the corporate debtor was passed by the Adjudicating Authority on 25.09.2018, and the applicant was appointed as Liquidator vide order dated 12.10.2018. The applicant/Liquidator filed the present application seeking directions on several issues related to the distribution of CIRP and liquidation costs, the applicability of IBBI regulations, and the calculation of the liquidator's fees.

## Facts

M/s Regal Metal & Ferro Alloys initiated liquidation proceedings against SPM Auto Pvt. Ltd. Vijender Sharma was appointed as the liquidator. The liquidation order was passed on 25.09.2018. The liquidator filed an application seeking directions on several issues. SIDBI, Canara Bank, Corporation Bank, and Mahindra & Mahindra Financial Services Limited were the respondents. SIDBI raised objections regarding the distribution of liquidation costs and the applicability of Regulation 2A of IBBI regulations. Corporation Bank objected to bearing the liquidation cost incurred after the date of realization of their property. The liquidator sought clarification on whether the period of dispute with SIDBI should be excluded when calculating the liquidator's fees. The

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## Issues and analysis

### Issue 1: Whether the percentage of distribution of CIRP & liquidation cost should be charged in the …

**Ratio:** Section 53 of IBC, 2016 read with regulation 42 of IBBI (Liquidation Process)

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**Reasoning:** The Tribunal noted that there is no specific provision to take the base of amount for

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**Interpretation:** The language used in Section 53 of IBC, 2016 read with regulation 42 of IBBI

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**Application:** The Tribunal directed the applicant/Liquidator to calculate the fees

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## Parties

- **Judges:** SH. P.S.N.…; SH. NARENDER…
- **Appellants:** VIJENDER…
- **Respondents:** SPM AUTO PV…; Small Industries…
- **Advocates:** Pardeep D…; Mohd. Moonis…; +3 more

## Timeline

- **2018-09-25 — Liquidation…**: The Adjudicating Authority passed the…
- **2018-10-12 — Appointment of…**: Vijender Sharma was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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