Case Law Details
IDBI Bank Limited Vs V. Venkata Sivakumar (NCLAT)
Held that conjoint reading of section 33 of IBC with section 16 of the General Clauses Act, 1897 would show that the authority which has power to appoint a person, equally has the power to suspend or dismiss that person.
Facts-
The Applicant filed an application before NCLT seeking removal of the liquidator. It was contended on behalf of the Applicant that the liquidator did not have the valid authorization for assignment as required by the regulation. It is the case of the applicant that the respondent liquidator by way of filing his written consent to act as the Liquidator of the corporate debtor without the requirement under Regulation 7A and has suppressed material fact before NCLT.
Whereas, the liquidator opposed the application on the ground that there is no provision under the IBC to change/remove the liquidator and also the liquidator cannot be changed at the behest of the stakeholders by the NCLT during the liquidation process.
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