AI Drafter 
TaxTMI 
TaxTMI 
2022 (7) TMI 1033
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..... Direct that all the actions carried out by him from May 29, 2020 as null and void; and d. Pass such other orders that it deems fit and thus render justice. 2. This Tribunal vide order dated 25.02.2019 had admitted an Application under Section 7 of the Code and commenced CIRP of the Corporate Debtor viz. Jeypore Sugar Company Limited at the behest of the present Applicant. Consequently, moratorium of the Corporate Debtor was declared and this Respondent was appointed as the Interim Resolution Professional. It was submitted that this appointment had been done on recommendation of this present Applicant. 3. Subsequently, in the CoC meeting with a majority of 90% resolved to retain the Respondent as the Resolution Professional. The Applicant states that the CoC were actively involved during the meetings where deliberations regarding Information Memorandum, Public announcement of EoI and other aspects had taken place. 4. It was further submitted by the Applicant that this Tribunal had ordered liquidation of the Corporate Debtor vide order dated 29.05.2020 wherein the Respondent was appointed as the Liquidator of the Corporate Debtor, the relevant portion are extracte....
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....iled seeking several reliefs by the Respondents being the Secured Creditors concerning the valuation of the Land and Buildings and Plant and Machinery carried out by the IBBI approved Registered valuers post the order of Liquidation. 10. The Learned Liquidator submitted that the Applicants are only claimants like the Operational Creditors/Government dues having no right to raise any dispute with regard to the appointment of valuers and the valuation given by them following the valuation standards. It was submitted that the Liquidator is empowered to take decision taking into consideration the relevant conditions prevailing and any advice of the stakeholders is only persuasive in nature and not binding as per Clause 9 of the Regulation 31A of the IBBI (Liquidation Process) Regulations, 2016. 11. It was submitted that the Applicant has not made IBBI and IIIPI as party Respondents in the present Applicant since they are necessary parties and that once the Liquidator is appointed, he cannot be removed unless there is a serious allegation of corruption. 12. Heard the submissions made by the Learned Counsel for the Applicant and the Learned Liquidator. The present Application ha....
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....g the term of his appointment that would justify removal. (2) In the event of death, resignation or removal of the provisional liquidator or as the case may be, Company Liquidator, the Tribunal may transfer the work assigned to him or it to another Company Liquidator for reasons to be recorded in writing. (3) Where the Tribunal is of the opinion that any liquidator is responsible for causing any loss or damage to the company due to fraud or misfeasance or failure to exercise due care and diligence in the performance of his or its powers and functions, the Tribunal may recover or cause to be recovered such loss or damage from the liquidator and pass such other orders as it may think fit. (4) The Tribunal shall, before passing any order under this section, provide a reasonable opportunity of being heard to the provisional liquidator or, as the case may be, Company Liquidator. 16. The aforesaid provisions of the Companies Act, 2013 would manifest the fact that the Liquidator can be removed under the following circumstances; (a) misconduct; (b) fraud or misfeasance; (c) professional incompetence or failure to exercise due care an....
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.... Having heard the learned counsel for the parties, we are of the considered opinion that if there be any irregularity in appointment/confirmation of Respondent No. 1 as 'Liquidator' for not having a valid authorisation for assignment on the date of such acceptance or commencement of such assignment within the purview of Regulation 7-A of the aforesaid Regulations, that does not adversely affect and render the order of liquidation passed by the Adjudicating Authority illegal or invalid. If there is any irregularity, as contended by the learned counsel for the Appellant, he shall be at liberty to bring it to the notice of the Adjudicating Authority who may have a re-look at the appointment of 'Liquidator' so far as the authorisation of Respondent No. 1 is concerned and pass appropriate order. 20. Thus, in so far as the appointment of Liquidator is concerned, it is an undisputed fact that the Respondent/Liquidator herein has accepted the assignment in respect of the Corporate Debtor without holding a valid AFA. Further, the Appellant viz. IDBI Bank was given the liberty to bring to the notice of the Adjudicating Authority to have a re-look at the appointment o....