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Issues: Whether the liquidator's remuneration during liquidation was governed by Regulation 39D of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 on the basis of the Committee of Creditors' recommendation, rather than by Regulation 4(2) and Regulation 4(3) of those Regulations.
Analysis: The Corporate Debtor was already in liquidation and the Committee of Creditors had, by the requisite voting share, approved both the contribution towards liquidation expenses and the remuneration payable to the liquidator. The objection taken before the Adjudicating Authority that Regulation 39D did not apply because the liquidation order had been passed under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 was found to be immaterial. Once the Committee of Creditors had taken a valid decision on liquidation costs and remuneration within the regulatory framework, the remuneration could not be shifted to a different provision merely because of the basis on which liquidation had been ordered.
Conclusion: The liquidator's remuneration was held to fall within Regulation 39D and was to be governed by the Committee of Creditors' recommendation; the contrary view was set aside.
Final Conclusion: The appeal succeeded to the limited extent of the remuneration issue and the impugned direction was replaced by the Committee of Creditors' approved basis for payment.
Ratio Decidendi: Where the Committee of Creditors validly determines liquidation costs and the liquidator's remuneration within the liquidation regulatory scheme, that decision governs the remuneration and cannot be displaced by reference to another provision merely because the liquidation order was made under a different clause of the Code.
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