# In the matter of Varrsana Ispat Limited

> NCLT judgment dated 2025-12-09. Citation: TCN-2025-NCLT-01885. The Liquidator of Varrsana Ispat Limited filed an application seeking directions for the…

- **Court:** NCLT
- **Order date:** 9 Dec 2025
- **Citation:** TCN-2025-NCLT-01885
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/varrsana-ispat-limited-57e4b91f

## Summary

### Background

The Liquidator of Varrsana Ispat Limited filed an application seeking directions for the Respondent, Mr. Akshay Jhunjhunwala, to reimburse expenses incurred during the period a scheme of compromise and arrangement under Section 230 was being considered. The Liquidator contends that these expenses, totaling ₹1,87,01,544/-, should be reimbursed as they were incurred while exploring the scheme.

## Facts

The Liquidator of Varrsana Ispat Limited sought reimbursement of ₹1,87,01,544/- from Mr. Akshay Jhunjhunwala for expenses incurred during the consideration of a Section 230 scheme.

The application was filed under Section 35(1)(n) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016, and relevant IBBI regulations.

A scheme proposal was received from Mr. Akshay Jhunjhunwala, an ex-director of Varrsana Ispat Ltd., on 13.08.2019.

The Liquidator filed I.A. 1331/2019 to place the scheme for consideration, stating it benefited all stakeholders.

The NCLAT in Jindal Steel & Power Ltd. v. Arun Kumar Jagatramka held that promoters ineligible under Section 29A cannot sponsor a Section 230 scheme during liquidation.

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## Issues and analysis

### Issue 1: Whether the Liquidator is entitled to recover liquidation fee from the Scheme Proponent under …

**Ratio:** Regulation 2B and the NCLAT judgment in C.A. Jai Narayan Gupta v. Radhasiriya Properties

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**Reasoning:** The NCLAT has categorically held that Regulation 2B and/or particularly the proviso to

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**Interpretation:** Regulation 2B is interpreted to mean that the liquidator's fee is payable from

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**Application:** The Liquidator's demand for payment of Rs.1,84,57,744/- from the Respondent is

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## Parties

- **Judges:** BIDISHA BA…; Cmde Siddharth…
- **Appellants:** SBER…; Anil…
- **Respondents:** Varrsana Ispat…; Akshay Jhunjhunwal…
- **Advocates:** Rohit S…; Niraj Ch…; +10 more

## Timeline

- **06.08.2019 — Liquidation C…**: Liquidation commenced and the Applicant was appointed as the Liquidator with liberty to…
- **13.08.2019 — Scheme Proposal…**: A scheme proposal was received from Mr. Akshay Jhunjhunwala, a member of the suspended…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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