# In the matter of Duckbill Drugs Private Limited

> NCLT judgment dated 2024-02-08. Citation: TCN-2024-NCLT-02702. Bell Finvest India Limited, a financial creditor, filed an application against Shantanu Brahma,…

- **Court:** NCLT
- **Order date:** 8 Feb 2024
- **Citation:** TCN-2024-NCLT-02702
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/duckbill-drugs-private-limited-7fe7940e

## Summary

### Background

Bell Finvest India Limited, a financial creditor, filed an application against Shantanu Brahma, the liquidator of the corporate debtor Duckbill Drugs Private Limited, seeking direction from the Adjudicating Authority to make payment of Rs. 56,91,199.00. The application arises from the liquidation process of Duckbill Drugs Private Limited, which was sold as a going concern. The applicant contends that the liquidator has not distributed the balance amount available in the liquidation account despite the sale of the corporate debtor's assets and payment to secured financial creditors and CIRP costs.

## Facts

Duckbill Drugs Private Limited, the Corporate Debtor, was sold as a going concern on 2022-05-11 for Rs. 5,00,00,001.00 along with the bank and cash balance, aggregating to Rs. 5,92,65,029.00 in the liquidation accounts. The Liquidator paid Rs. 47,01,621.00 to Bell Finvest India Limited, an unsecured Financial Creditor. Further payments were made between 2022-05-19 and 2022-08-22, leaving a balance of Rs. 56,19,199.00 in the liquidation account. The assets of the Corporate Debtor were sold on 2022-05-21. An application bearing IA No.452 of 2022 was filed on 2022-04-18 by Shantanu Chatterjee, General Secretary of Federation of Medical and Sales Representative, praying relief for condonation of delay in filling workman/employees claim. On 2022-10-14, the Adjudicating

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should direct the liquidator to pay Rs. 56,91,199.00 to the …

**Ratio:** The ratio is that the distribution of assets in liquidation must adhere to the priorities

…

**Reasoning:** The court reasoned that there were pending litigations initiated by and against the

…

**Interpretation:** The interpretation is that the liquidator has a fiduciary duty to manage the

…

**Application:** The court applied this ratio to the facts by acknowledging the pending claims

…

## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Bell Finvest…
- **Respondents:** Duckbill Drugs…; Shantanu…

## Timeline

- **2022-01-29 — Workmen/employ…**: The liquidator received individual forms from 38 employees/workmen totaling to an amount…
- **2022-04-18 — Application for…**: An application bearing IA No.452 of 2022 was filed by Shantanu Chatterjee, General…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 53 — Distribution of assets](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-53)

---

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-division-bench-court-i-chenn/duckbill-drugs-private-limited-7fe7940e