# In the matter of Abhijeet Hazaribagh Toll Road Limited

> NCLT judgment dated 2023-10-10. Citation: TCN-2023-NCLT-01311. The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 10 Oct 2023
- **Citation:** TCN-2023-NCLT-01311
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abhijeet-hazaribagh-toll-road-limited-c2ea4b19

## Summary

### Background

The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016. The application was preferred by Abhijeet Hazaribagh Toll Road Limited, an Operational Creditor, challenging the decision taken by the Stakeholders Consultation Committee (SCC) at its meeting on 2023-07-10 to seek benefit of the Vivad Se Vishwas-II (Contractual Disputes) Scheme. The applicant contends that the liquidator's decision to settle with NHAI under the scheme is not in the best interest of the corporate debtor and that the liquidator is bound to follow the liquidation process as envisaged under the Code and Regulations.

## Facts

Sanjeev Kumar Mishra is the Operational Creditor. Abhijeet Hazaribagh Toll Road Limited is the Corporate Debtor. Nirmal Kumar Agarwal is the Liquidator of Abhijeet Hazaribagh Toll Road Limited. An arbitral award of Rs. 234,59,51,401.46 was awarded against NHAI, which is under challenge before the Delhi High Court. The total claim of the Financial Creditor is Rs. 555 crores. The Stakeholders Consultation Committee (SCC) decided to seek benefit of the Vivad Se Vishwas-II (Contractual Disputes) Scheme at its meeting held on 2023-07-10. The last date for availing benefit under the scheme is 2023-10-30. The Operational Creditor challenges the decision of the SCC, arguing that the liquidator should not have negotiated with NHAI at a lower value. The liquidator contends that

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## Issues and analysis

### Issue 1: Whether the liquidator's decision to opt for …

**Ratio:** The liquidator is bound to act in the best interest of the corporate debtor and maximize

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**Reasoning:** The NCLT relied on the commercial wisdom of the liquidator and the support of the

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**Interpretation:** The liquidator has the authority to make decisions regarding the liquidation

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**Application:** In this case, the liquidator's decision to opt for the Vivad Se Vishwas-II

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## Parties

- **Judges:** Smt Bidisha…; ARVIND DEVA…
- **Appellants:** Sanjeev Kumar…
- **Respondents:** Abhijeet Hazaribag…; Nirmal Kumar…

## Timeline

- **2023-07-10 — Stakeholders Consultatio…**: The Stakeholders Consultation Committee decided to seek benefit of the Vivad Se…
- **2023-05-29 — Vivad Se Vishwas-II…**: The Ministry of Finance, Department of Expenditure Procurement Policy Division, floated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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