# In the matter of Barcle Enterprises Limited

> NCLT judgment dated 2023-10-03. Citation: TCN-2023-NCLT-01422. The case involves an application filed by Radhasiriya Properties Pvt Ltd (Applicant) under…

- **Court:** NCLT
- **Order date:** 3 Oct 2023
- **Citation:** TCN-2023-NCLT-01422
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/barcle-enterprises-limited-62fe6291

## Summary

### Background

The case involves an application filed by Radhasiriya Properties Pvt Ltd (Applicant) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, against Jai Narayan Gupta (Respondent), the Liquidator of Barcle Enterprises Limited (Corporate Debtor). The Applicant sought a refund of Rs. 23,88,280/- paid to the Liquidator during a proposed scheme of compromise and arrangement. The Corporate Debtor, Barcle Enterprises Limited, was undergoing CIRP under Section 7 of the I&B Code, and subsequently, liquidation was ordered. The Applicant proposed a scheme of compromise and arrangement, and made payments to the Liquidator. However, the scheme was rejected by the creditors. The Applicant then requested a refund of the payments made, which the Liquidator refused.

## Facts

1. Barcle Enterprises Limited was undergoing Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code (I&B Code), 2016.
2. Jai Narayan Gupta was appointed as the Liquidator of Barcle Enterprises Limited after the CIRP failed.
3. Radhasiriya Properties Pvt Ltd proposed a scheme of compromise and arrangement with the creditors of Barcle Enterprises Limited.
4. Radhasiriya Properties Pvt Ltd deposited Rs. 7,88,280/- into the corporate debtor's account.
5. Between April and May 2022, communications occurred between Radhasiriya Properties and the Liquidator regarding the scheme.
6. On 12.05.2022, the Liquidator accepted the proposed scheme and filed I.A. (IB) No. 495/KB/2022 to conduct a creditors' meeting.
7. On 06.01.2023, the

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## Issues and analysis

### Issue 1: Whether the Liquidator is entitled to claim his fees and other costs in relation to liquidation, …

**Ratio:** The ratio is based on the interpretation of Section 34(8) and 34(9) of the I&B Code,

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**Reasoning:** The Tribunal reasoned that if a compromise or arrangement is sanctioned by the Tribunal

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**Interpretation:** The interpretation of the legal provisions indicates that the costs incurred by

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**Application:** In this specific case, the Applicant proposed a scheme of compromise and

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Radhasiriya…
- **Respondents:** Barcle Enterprises…; Jai Narayan…

## Timeline

- **2019-08-29 — Order for CIRP…**: Tribunal directed to commence CIRP…
- **2022-01-24 — Order for Liq…**: Tribunal passed an order of…

## 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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