# In the matter of Varrsana Ispat Limited IA No.1014-KB-2020 in CP (IB) No.543-KB-2017

> NCLT judgment dated 2021-05-28. Citation: TCN-2021-NCLT-02086. The case involves an application filed by Varssana Employee Welfare Association against Anil…

- **Court:** NCLT
- **Order date:** 28 May 2021
- **Citation:** TCN-2021-NCLT-02086
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varrsana-ispat-limited-ia-no1014-kb-2020-in-cp-ib-no543-kb-2017-524331b9

## Summary

### Background

The case involves an application filed by Varssana Employee Welfare Association against Anil Goel, the Liquidator of Varrsana Ispat Limited (Corporate Debtor). The applicant sought several reliefs, including the refund of fees taken by the liquidator, inclusion of a representative in the Stakeholders' Consultation Committee (SCC), and recovery of funds illegally recovered by financial creditors. The applicant alleged that the liquidator distributed funds improperly, did not include workers in the SCC, and failed to comply with previous orders of the Adjudicating Authority.

## Facts

Varssana Employee Welfare Association filed an application against Anil Goel, the liquidator of Varrsana Ispat Limited. The applicant sought multiple reliefs, including the refund of ₹1.5 crore in fees taken by the liquidator, inclusion of a representative in the Stakeholders' Consultation Committee (SCC), and recovery of ₹26 crore from financial creditors. The applicant alleged that the liquidator illegally distributed funds, failed to include workers in the SCC, and did not comply with previous orders. The liquidator argued that the applicant lacked locus standi and that the prayers were infructuous. The liquidator also raised concerns about the applicability of the Maharashtra Public Trust Act. The Adjudicating Authority had previously ordered the financial

…

## Issues and analysis

### Issue 1: Whether the liquidator should refund …

**Ratio:** The Disciplinary Committee of the IBBI observed that taking a percentage of the amount

…

**Reasoning:** The liquidator refunded the fee after the

…

**Interpretation:** The IBBI's observation highlights the importance of not incentivizing

…

**Application:** Since the fee was refunded, the prayer

…

## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Varrsana Employee…
- **Respondents:** Varrsana Ispat…; Anil Goel &…

## Timeline

- **2018-07-12 — Order by Adjudicating…**: Order passed by the Adjudicating…
- **2019-10-01 — Applicant's Knowledge…**: Around October-November 2019, the Applicant came to know that the Liquidator withheld ₹18…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/varrsana-ispat-limited-ia-no1014-kb-2020-in-cp-ib-no543-kb-2017-524331b9