Corporate Debtor Dissolution Order: Liquidation Costs Reimbursement & Record Handover

The Adjudicating Authority ordered the dissolution of the Corporate Debtor, M/s. Sristek Clinical Research Solutions Limited, as it had no realizable assets for distribution. The Liquidator was relieved from duty, and the Operational Creditor was directed to reimburse liquidation costs of &8377;1,09,450 and pay a lump sum fee of &8377;1,00,000 to the Liquidator. Post-dissolution, the Liquidator was instructed to hand over Company records to IBBI and inform the relevant authority. The National Company Law Tribunal, Hyderabad Bench, concluded the proceedings.

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Issues:
- Application for dissolution under Section 54(1)(a) and Regulation 14 of IBBI (Liquidation Process) Regulations, 2016
- Approval for payment of expenses and fee to the Liquidator

Analysis:
1. Application for Dissolution: The case involved an application for dissolution filed by the Liquidator under Section 54(1)(a) and Regulation 14 of IBBI (Liquidation Process) Regulations, 2016. The Corporate Debtor, M/s. Sristek Clinical Research Solutions Limited, had no realizable assets to form a Liquidation Estate for distribution. The Adjudicating Authority, in the exercise of powers under Section 54(2) of the I & B Code, 2016, ordered the dissolution of the Corporate Debtor, relieving the Liquidator from duty.

2. Payment of Expenses and Fee: The Liquidator, who bore all liquidation costs amounting to &8377; 1,09,450, requested reimbursement and a monthly fee of &8377; 75,000 for his services. The original Applicant/Operational Creditor agreed to reimburse the liquidation cost but contested the fee amount. Regulation 2A of IBBI (Liquidation Process) Regulations, 2016, mandates the CoC to contribute to liquidation costs. Regarding the Liquidator's fee, Regulation 4 of the same regulations stipulates that it should be decided by the CoC or based on certain criteria in the absence of CoC decision.

3. Resolution on Fee Payment: In this case, no compromise or arrangement was reached under Section 230 of the Companies Act, and no amount was realized or distributed by the Liquidator. Given these circumstances and the sole claimant being the original Applicant/Operational Creditor, the Adjudicating Authority directed the Operational Creditor to reimburse &8377; 1,09,450 as liquidation cost and pay a lump sum fee of &8377; 1,00,000 to the Liquidator for his services.

4. Post-Dissolution Procedures: Upon dissolution, the Liquidator was instructed to hand over the Company records to IBBI and inform the relevant authority where the Corporate Debtor is registered within 7 days. The Adjudicating Authority disposed of the application, marking the conclusion of the proceedings.

This detailed analysis of the judgment from the National Company Law Tribunal, Hyderabad Bench, highlights the key issues of the application for dissolution and approval for payment of expenses and fees to the Liquidator, providing a comprehensive understanding of the legal proceedings and decisions made by the Tribunal.

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