# In the matter of Abhishek Corporation Limited

> NCLT judgment dated 2024-04-17. Citation: TCN-2024-NCLT-01699. The Interlocutory Application 632/2023 was filed in C.P. No. 1499 (MB)/C-III/2017 under Section…

- **Court:** NCLT
- **Order date:** 17 Apr 2024
- **Citation:** TCN-2024-NCLT-01699
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abhishek-corporation-limited-0da7a2be

## Summary

### Background

The Interlocutory Application 632/2023 was filed in C.P. No. 1499 (MB)/C-III/2017 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The applicant, Mr. Kshitiz Gupta, the liquidator of Abhishek Corporation Limited, sought to fix his remuneration. The corporate insolvency resolution process (CIRP) was initiated against Abhishek Corporation Limited following a petition filed by an operational creditor. The resolution plan was not approved, leading to the liquidation of the corporate debtor. Mr. Ashish Mukund Chandak was initially appointed as the liquidator but failed to take charge, and Mr. Kshitiz Gupta was subsequently appointed. The liquidation process faced challenges, including appeals to the NCLAT and the Supreme Court, which temporarily halted and

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## Facts

The case involves the liquidation of Abhishek Corporation Limited, initiated after the failure of the resolution plan under the Insolvency and Bankruptcy Code, 2016. Mr. Kshitiz Gupta was appointed as the liquidator. The liquidation process faced multiple legal challenges, including appeals to the NCLAT and the Supreme Court, which temporarily stayed the process. Despite these challenges, the liquidator continued to manage the corporate debtor as a going concern, maintaining operations and generating revenue. The corporate debtor was eventually sold as a going concern to Mahalaxmi Textile for Rs. 40,45,00,000/-. The successful bidder deposited the entire sum of the sale proceeds together with interest @ 12% amounting to a total sum of Rs. 41,04,85,000/- to the

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## Issues and analysis

### Issue 1: Whether the remuneration of the Liquidator should be fixed as per the options submitted by the …

**Ratio:** The remuneration of the Liquidator should be fixed in accordance with the IBBI

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**Reasoning:** The tribunal rejected the options submitted by the Liquidator, finding them either

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**Interpretation:** The IBBI regulations provide a structured framework for determining the

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**Application:** The tribunal directed that the Liquidator's remuneration be computed as per

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## Parties

- **Judges:** LAKSHMI G…; SH. CHARANJEET…
- **Appellants:** Kshitiz…
- **Respondents:** M/S ABHISHEK…; M/S SHRI KARVIR…

## Timeline

- **2017-01-01 — Company Petiti…**: Company Petition 1499 (MB)/2017 filed by an Operational Creditor against M/s Abhishek…
- **2017-11-17 — CIRP Admi…**: Tribunal admitted the petition under section 9 of the Insolvency and Bankruptcy Code,…

## 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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