Appellate Tribunal Upholds Exclusion of Period from Liquidator's Fee Calculation

The Appellate Tribunal upheld the Adjudicating Authority's decision to exclude a 15-month period from the calculation of the liquidator's fee. The delay in the liquidation process was attributed to SIDBI's non-cooperation and misinterpretation of regulations, rather than the liquidator's actions. The Tribunal found the liquidator had diligently followed regulations and IBC provisions, while SIDBI's failure to comply significantly contributed to the delay. Consequently, the appeal was dismissed, and no costs were awarded.

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Issues Involved:
1. Exclusion of a 15-month period in calculating the liquidator's fee.
2. Delay in the liquidation process and its attribution.
3. Compliance with Liquidation Process Regulations and IBC provisions.

Issue-wise Detailed Analysis:

1. Exclusion of a 15-month period in calculating the liquidator's fee:
The Appellant, SIDBI, contested the exclusion of a 15-month period (from 30.11.2018 to 24.2.2020) from the calculation of the liquidator's fee under Regulation 4 of the Liquidation Process Regulations. SIDBI argued that the delay in the liquidation process was due to the liquidator's actions and inactions, and hence, this period should not be excluded. The liquidator, however, maintained that the exclusion was justified due to SIDBI's non-cooperation and misinterpretation of the regulations.

2. Delay in the liquidation process and its attribution:
SIDBI claimed that the liquidator delayed the process by not handing over the possession of the HSIIDC Bawal property and by seeking unnecessary undertakings. The liquidator countered that SIDBI failed to comply with the requirements under the Liquidation Process Regulations, including providing the necessary undertaking and paying the liquidation costs. The liquidator had to approach the Adjudicating Authority multiple times to seek directions for SIDBI to comply with the regulations, which contributed to the delay.

3. Compliance with Liquidation Process Regulations and IBC provisions:
The liquidator followed the procedures outlined in the Liquidation Process Regulations, including seeking an undertaking from SIDBI and informing them of the need to pay liquidation costs. SIDBI's failure to understand and comply with these regulations led to delays. The Appellate Tribunal noted that the liquidator acted diligently and in accordance with the law, and SIDBI's non-compliance was a significant factor in the delay.

Conclusion:
The Appellate Tribunal found that the liquidator had acted diligently and in accordance with the Liquidation Process Regulations and IBC provisions. The delay was attributed to SIDBI's non-cooperation and misinterpretation of the regulations. Therefore, the exclusion of the 15-month period from the calculation of the liquidator's fee was justified. The appeal was dismissed, and the Adjudicating Authority's order was upheld. There was no order as to costs.

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