Tribunal permits Liquidator to update stakeholders list, rejects Operational Creditor's claim The Tribunal granted permission to the Liquidator to remove the Operational Creditor from the Stakeholders Consultation Committee and modify the list of ...
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The Tribunal granted permission to the Liquidator to remove the Operational Creditor from the Stakeholders Consultation Committee and modify the list of stakeholders. The Operational Creditor's interest claim was rejected due to lack of provision in the invoice, and the claim was later withdrawn following a settlement with the Corporate Debtor's promoter. The Tribunal relied on Regulation 31(3) to allow the Liquidator to revise the stakeholder list, emphasizing the importance of complying with regulatory requirements in the liquidation process. The Liquidator was directed to submit the modified list within seven days.
Issues: Application to remove Operational Creditor from Stakeholders Consultation Committee and modify list of stakeholders.
Analysis: The judgment pertains to an Application filed by the Liquidator seeking permission to remove the name of an Operational Creditor from the Stakeholders Consultation Committee and to modify the list of stakeholders. The Liquidator had been appointed following the order for Liquidation of the Corporate Debtor. The Operational Creditor, M/s. Regenix Drugs Limited, had made a claim which included an interest component. However, upon examination, it was found that there was no provision for interest in the invoice raised, and hence, the interest portion of the claim was rejected. Subsequently, the Operational Creditor requested the Liquidator to dismiss the admitted claim as withdrawn due to a settlement with the promoter of the Corporate Debtor. As per Regulation 31(3) of the IBBI (Liquidation Process) Regulations, 2016, any modification to the list of stakeholders is required to be done by the Adjudicating Authority.
The Tribunal noted that Regulation 31(3) allows the Adjudicating Authority to permit the Liquidator to submit a revised list of stakeholders if necessary modifications are warranted. Since the Operational Creditor had withdrawn its claim, the Liquidator needed to modify the list of stakeholders. Therefore, the Tribunal concluded that the Application deserved to be allowed. Consequently, the Liquidator was granted permission to revise the list of stakeholders and directed to file the modified list within seven days from the date of the order.
In conclusion, the Tribunal allowed the Application, emphasizing the provisions of Regulation 31(3) which empower the Liquidator to revise the list of stakeholders in cases where modifications are essential. The judgment ensures compliance with the regulatory framework governing the liquidation process and upholds the rights of stakeholders involved in the proceedings.
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