Tribunal Appoints Liquidator to Manage Corporate Debtor's Affairs

The Tribunal appointed Mr. Lekhraj Bajaj as the Liquidator under Section 34 of the Insolvency and Bankruptcy Code, 2016, after the Resolution Professional declined the role and no Committee of Creditors was constituted. By invoking Rule 11 of the NCLT Rules, the Tribunal ensured the continuation of the liquidation process and proper management of the corporate debtor's affairs.

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Issues: Appointment of Liquidator under Section 34 of IBC, 2016

Analysis:
1. The judgment dealt with the appointment of a Liquidator under Section 34 of the Insolvency and Bankruptcy Code, 2016. The provision states that when a Liquidation order is passed under Section 33 of the IBC, the Resolution Professional appointed for the Corporate Insolvency Resolution Process (CIRP) shall act as the Liquidator unless replaced by the Adjudicating Authority under sub-section (4) of Section 34. The Resolution Professional must submit a written consent for the appointment as the Liquidator. In this case, the IRP declined to act as the Liquidator, and no Committee of Creditors (CoC) was constituted. The order of liquidation was passed, and the matter was listed to appoint a Liquidator. However, the erstwhile IRP declined the appointment.

2. Since neither the CoC was constituted nor any other claimant emerged, the Tribunal decided to exercise its powers under Rule 11 of the NCLT Rules. By invoking Rule 11, Mr. Lekhraj Bajaj was appointed as the Liquidator. His registration details were provided, and the office was instructed to hand over the order to the appointed Liquidator. The Tribunal disposed of the relevant application in light of the appointment of the new Liquidator.

This judgment illustrates the application of Section 34 of the IBC, 2016 regarding the appointment of a Liquidator when the Resolution Professional declines the role. The Tribunal exercised its powers under Rule 11 of the NCLT Rules to appoint a Liquidator in the absence of the CoC and any other claimant. The decision ensures the continuation of the liquidation process and the proper management of the corporate debtor's affairs under the provisions of the IBC.

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