Liquidator Cannot Claim Fees When Secured Creditors Independently Conduct Asset Sales Under Regulation 4(2)(b)

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....The Tri determined that a liquidator is only entitled to fees for realization and distribution when they have actually performed these functions, per Regulation 4(2)(b) of IBBI (Liquidation Process) Regulations, 2016. In this case, the Respondent Banks conducted the sale of the Panagarh Unit independently, with no involvement from the liquidator in the realization or distribution process. Consequently, the liquidator's claim for fees related to this sale was deemed not payable. The Tri distinguished this case from Shikshak Sahakari Bank Ltd., noting that while secured creditors must contribute to CIRP and liquidation costs under Regulation 21A(2)(a), this obligation does not extend to paying the liquidator's fees for processes in which they had no participation.....