# In the matter of Reliable Cashew Company Pvt. Ltd.

> NCLT judgment dated 2024-06-03. Citation: TCN-2024-NCLT-01263. The National Company Law Tribunal (NCLT), Chennai Bench, heard an application…

- **Court:** NCLT
- **Order date:** 3 Jun 2024
- **Citation:** TCN-2024-NCLT-01263
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/reliable-cashew-company-pvt-ltd-e9a80792

## Summary

### Background

The National Company Law Tribunal (NCLT), Chennai Bench, heard an application (IA(IBC)/2308(CHE)/2023) regarding a corporate insolvency resolution process. The NCLT had previously appointed Mr. GS Sudhir as a liquidator on 2024-05-31. However, the Committee of Creditors (CoC) had recommended Mr. Ravindra Beleyur (the applicant in the current IA) to act as the liquidator. The IBBI had also issued a notification recommending that a person other than the IRP/RP of the Corporate Debtor be appointed as the Liquidator. The NCLT's initial order failed to consider a decision of the Hon'ble Karnataka High Court regarding the IBBI notification.

## Facts

On 2024-05-31, the NCLT, Chennai Bench, appointed Mr. GS Sudhir as a liquidator in IA(IBC)/2308(CHE)/2023. The Committee of Creditors (CoC) had recommended Mr. Ravindra Beleyur as the liquidator. The IBBI issued a notification recommending that a person other than the IRP/RP of the Corporate Debtor be appointed as the Liquidator. The IBBI notification/circular dated 2023-07-18 was challenged in Writ Petition WP.No.27043 of 2023 before the Karnataka High Court. The Karnataka High Court ordered that the petitioner, insofar as he is appointed as Resolution Professional/Liquidator in the subject liquidation, shall not be precipitated. The NCLT's order dated 2024-05-31 failed to consider the Karnataka High Court's order. The NCLT invoked Rule 11 of the NCLT Rules, 2016, to

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## Issues and analysis

### Issue 1: Whether the NCLT's order dated 2024-05-31, appointing Mr. GS Sudhir as the liquidator, should be …

**Ratio:** The principle of judicial review and the need to rectify errors to ensure due process of

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**Reasoning:** The NCLT acknowledged that its previous order failed to consider the Karnataka High

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**Interpretation:** The interpretation of judicial review allows a court to correct its own errors

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**Application:** The NCLT applied this principle by acknowledging its error in not considering

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## Parties

- **Judges:** Shri. JYOTI KUMAR…; SHRI. RAVICHANDRAN…
- **Appellants:** RavindraB…
- **Respondents:** Reliable Cashew…

## Timeline

- **2023-07-18 — IBBI Notification/Circul…**: IBBI issued a notification/circular…
- **2024-01-09 — Karnataka High Court…**: The Hon'ble Karnataka High Court passed an order…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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