Distribution of unsold liquidation assets approved where recovery was impractical and stakeholders consented to proportional transfer.

Where unsold liquidation assets are not readily realisable and further recovery efforts would only prolong liquidation and increase costs, the Tribunal may approve their distribution among stakeholders in proportion to their claims under the liquidation regulations. Consent of the stakeholders and the absence of objection to the proposed mode of transfer supported approval of distribution at their own cost and convenience after issuance of the necessary certificate or instruction slip. The proposed distribution of unsold assets was accordingly approved, and the liquidation application was disposed of with discharge of the liquidator subject to compliance.

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Issues: Whether the liquidator could distribute the unsold assets of the corporate debtor among stakeholders in proportion to their claims under the liquidation regulations.

Analysis: The application was supported by the liquidator's report showing that the assets were not readily realisable, that further attempts at recovery would likely prolong the liquidation and increase costs, and that the stakeholders had consented to the proposed distribution. The Tribunal noted that the proposed mode of distribution had no objection from the concerned stakeholders and that they were agreeable to take transfer of the shares and assets at their own cost and convenience after issuance of the necessary certificate or instruction slip.

Conclusion: The proposed distribution of unsold assets was approved and the application was allowed.

Final Conclusion: The liquidation proceedings were permitted to proceed by distribution of the unsold assets in the manner proposed by the liquidator, with consequential disposal of the liquidation application and discharge of the liquidator subject to compliance.

Ratio Decidendi: Where unsold liquidation assets are not readily recoverable or realisable and the stakeholders consent, the Tribunal may approve distribution of such assets in proportion to claims under the liquidation regulations.

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