# In the matter of S. K. Masala and Foods Ltd. IA 727 of 2021 In CP(IB) 468 of 2018

> NCLT judgment dated 2022-12-15. Citation: TCN-2022-NCLT-00146. The case involves an application under Section 9 of the IBC. The Liquidator seeks adjournment,…

- **Court:** NCLT
- **Order date:** 15 Dec 2022
- **Citation:** TCN-2022-NCLT-00146
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/s-k-masala-and-foods-ltd-ia-727-of-2021-in-cpib-468-of-2018-acfb7298

## Summary

### Background

The case involves an application under Section 9 of the IBC. The Liquidator seeks adjournment, stating that the arguing counsel is unavailable. The application is from 2021 and is not being attended to by the Liquidator. An order dated 14.07.2022 records that the Liquidator had undertaken to file a list of dates and events, which has not been done. The Income Tax counsel was directed to comply with an order dated 09.06.2022, and they state they have complied and served a copy to the Liquidator. The matter was listed on 30.09.2022, but no one appeared for the applicant. On 17.11.2022, the matter was adjourned due to a lack of time, and the applicant's appearance was not recorded.

## Facts

An application under Section 9 of the IBC is being heard. The Liquidator requested an adjournment because the arguing counsel was unavailable. The application dates back to 2021. The Liquidator had previously undertaken to file a list of dates and events by 14.07.2022, but failed to do so. The Income Tax counsel was directed to comply with an order dated 09.06.2022 and claims to have served a copy to the Liquidator. The applicant was absent on 30.09.2022. The matter was adjourned on 17.11.2022 due to time constraints. The court is concerned about the Liquidator's negligence in pursuing the application for closure of the liquidation process, which has been pending for over a year. The relevance of the facts lies in demonstrating the Liquidator's lack of diligence and

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## Issues and analysis

### Issue 1: Whether the Liquidator is negligent in pursuing the application for closure of the liquidation …

**Ratio:** A liquidator has a fiduciary duty to act diligently and efficiently in the liquidation

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**Reasoning:** The court observes that the application for closure of the liquidation process has been

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**Interpretation:** The legal issue concerns the Liquidator's responsibility to diligently pursue

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**Application:** The Liquidator's failure to file the list of dates and events and the prolonged

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## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** C. Girdharlal…
- **Respondents:** S.K. Masala &…

## Timeline

- **2022-06-09 — Order for Income Tax…**: Income Tax counsel was…
- **2022-07-14 — Order regarding list of…**: Order records Liquidator's undertaking…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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