TaxTMI 
TaxTMI 
2022 (7) TMI 463
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....njay Kumar Aggarwal , Liquidator in person ORDER Per : Subrata Kumar Dash , Member ( Technical ) IA No. 46/2022 This is an application filed under Section 60(5) of the IBC, 2016. In the present application, Kulwinder Singh Makhni, Suspended Director of M/s Punjab Basmati Rice Ltd. is the applicant, and Mr. Sanjay Kumar Aggarwal, Liquidator of M/s Punjab Basmati Rice Ltd., is the respondent. 2. In the present application, the applicant prays that the Liquidator may be directed to supply the copy of valuation reports submitted by respondent/Liquidator in pursuance of order dated 09.11.2021 passed by Hon'ble Adjudicating Authority in IA No.550/2021 to the applicant being a member of SCC, in accordance with Regulation 31A of LP R....
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....eports got conducted by Liquidator from two appointed valuers under the provisions of Regulation 31A(1) and 31A(5) of the IBBI (Liquidation Process) Regulations, 2016. Before proceeding further with e-auction, it is mandatory for the Liquidator to supply a copy of fresh valuation reports to the ex-Director (applicant) and other members of SCC. 4. The Respondent/Liquidator, in his reply filed by Diary No.00602/01 dated 09.02.2022, has stated that there is no provision in the Code to challenge the decision of the Liquidator on valuations conducted during the CIRP period in terms of Regulation 35 of Liquidation Process Regulations. The Applicant has no locus standi to challenge the reserve price fixed for the sale of assets of the corporate....
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.... (SC) 2477 in para 12. 2. NCLT, Ahmedabad Bench in case of Hemant Shantilal Shah and Anr. Vs. Care Office Ltd. through Resolution Professional Vikas Jain and Ors. cited at (2022) ibclaw.in 316 NCLT decided on 31.03.2022. 3. The Hon'ble Supreme Court in the case of MSR Leathers Versus S Palaniapp Anr. cited at 22103 (1) SCC Page 177 (para 29). 6. Similarly, the Respondent/Liquidator has filed written submission by Diary No.00851/2 dated 27.05.2022, inter alia placing reliance on the decisions in the following cases:- 1. The Hon'ble NCLT Delhi vide order dated 26.08.2019 in the matter of Oriental Bank of Commerce V. Shekhar Resorts Limited in C.A. 260-261/2016 in C.P. (IB) No.22 of 2018. 2. The H....
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....is context, the relevant Regulation of IBBI (Liquidation Process) Regulations, as amended on 30.09.2021,are extracted below:- "Regulation 31-A Stakeholders' Consultation Committee (as amended up to 30.09.2021): The Liquidator shall constitute a consultation committee within sixty days from the liquidation commencement date, based on the list of stakeholders prepared under regulation 31, to advise him on the matters relating to - (a) xxx xxx xxx xxx (b) Sale under regulation 32, including the manner of sale, pre-bid qualification, reserve price, amount of earnest money deposit, and marketing strategy. Provided that the decision(s) taken by the Liquidator prior to the constitution of consultati....
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.... and advances the object sought to be achieved by the legislation, in preference to an interpretation which defeats such object. This Court has, in a long line of decisions, recognised purposive interpretation as a sound principle for the courts to adopt while interpreting statutory provisions. In this decision, the Hon'ble Apex Court also referred to its decision in the case of New India Sugar Mills Ltd. Vs. CST (AIR) p. 1213, para 8) wherein the Court observed as under: "8......It is a recognised rule of interpretation of statutes that the expressions used therein should ordinarily be understood in a sense in which they best harmonise with the object of the statute and which effectuate the object of the legislature. If an exp....
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....in the interest of Justice, the copy of valuation report needs to be supplied to ex-directors, as already directed the Predecessor Bench." 10.3 This Bench also observes that the decisions mentioned in para 6 above relied upon by the respondent, do not advance his case as the facts involved in these cases are entirely different from the facts of the present case. The decision in the case of Oriental Bank of Commerce (Supra), deals with the CIRP process in which the non- cooperative suspended Board was held to be acting in a malfide manner and liquidation process was not involved.. Furthermore,there was no occasion for NCLAT to deal with the interpretation of Regulation 31-A of LP Regulations, 2016 in this order. Similarly, the issue invol....