Replacement of liquidator accepted as approved by majority Stakeholders Consultation Committee

Padmakumar K. C. Vs Piramal Capital And Housing Finance Limited (NCLT Kochi)

NCLT Kochi held that application under Regulation 31A(11) of the IBBI (Liquidation Process) Regulations, 2016 valid as Stakeholders’ Consultation Committee [SCC] with majority vote has resolved to replace the present liquidator.

Facts- The present application has been filed by the Liquidator of M/s. Asten Realtors Private Limited under Regulation 31(A)(11) of the IBBI (Liquidation Process), 2016 to replace the present Liquidator, Sri. K.C. Padmakumar and appoint Sri. Sreenivasan P R as the Liquidator of the Corporate Debtor as resolved by the SCC. The application also filed to fix a fee of Rs. 2 Lakh per month as the fee of the liquidator to be replaced for the period he has worked, which is equivalent to the minimum fee prescribed by the IBBI for the Corporate Insolvency Resolution Process.

Conclusion- Held that considering the provisions of the Insolvency and Bankruptcy Code, 2016, and the IBBI (Liquidation Process) Regulations, 2016, this Adjudicating Authority finds merit in the application. The Stakeholders’ Consultation Committee (SCC), with a majority vote of 94.30%, has resolved to replace the present Liquidator, Sri. K.C. Padmakumar, with Sri. Sreenivasan P.R to carry out functions as mentioned under the Insolvency and Bankruptcy Code, 2016, and IBBI (Liquidation Process) Regulations, 2016. Regulation 31A (11) IBBI (Liquidation Process) Regulations, 2016 such a recommendation holds validity. Further, as per Regulation 34B of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the minimum prescribed fee for an insolvency professional handling claims between Rs. 50 Crores and Rs. 500 Crores is Rs. 2 Lakhs per month, which is reasonable in the present case.