TMI Blog2024 (3) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... ulation 4 of the IBBI (Liquidation Process) Regulation, 2016, and a circular issued by the IBBI clarifying the term amount realized. - HELD THAT:- There is an error in the approach of the Tribunal while rejecting the application filed by the appellant which deserves to be reconsidered in terms of the order being passed herein. The issue in the present case is that the appellant effected various sales during the period he remained the liquidator of the Corporate Debtor which has been set up by the appellant in the claim application filed before the present Liquidator in which it is shown that total amount of sale is Rs. 78,47,31,778/- and the appellant is accordingly entitled to the percentage of fee in respect of the sales effected in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preme Rural Mills Pvt. Ltd.) (Corporate Debtor) for the resolution of its debt. The application was admitted on 29.09.2017 and the appellant (Bhupesh Gupta) who was appointed as the Interim Resolution Professional (IRP) on 11.10.2017. The Corporate Debtor went into liquidation by order dated 08.08.2018 and the appellant was appointed as Liquidator to sell of the Corporate Debtor as a going concern. On 01.11.2019 the appellant filed CA No. 941 of 2019 for relieving him from his duty on the medical ground. The said application was allowed and Ravinder Kumar Goel was appointed as the Liquidator. 3. The appellant has thus worked as a Liquidator of the Corporate Debtor from 08.08.2018 to 01.11.2019 (for one year and 84 days). 4. It has also come ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2018 and ends on 01.11.2019 whereas the amendment in Regulation 4 came into effect from 25.07.2019. 7. Counsel for the appellant has submitted that as per the un-amended provision of Regulation 4 (3), the Liquidator is entitled to a fee as a percentage of the amount realized, he has laid emphasis on the word amount realized to contend that the appellant has not only sold the car for a sum of Rs.2,60,000/- but also effected sales during Liquidation (within 6 months of Rs. 75,37,58,832/-, in the next six months of Rs. 30106506/- and in the next one year 866435/-) which is a part of his claim made to the present liquidator apart from other liquidation cost. It is submitted that the Tribunal has committed a patent error in dismissing the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow been clarified by the IBBI that amount realized would mean the amount realized from the sale of the asset where the asset changes form. He has been candid enough to submit that where the asset is already liquid such as cash and bank balance including term deposits, mutual funds and quoted shares, then it would not be the realisation of the asset because it is already available for the purpose of distribution to the stakeholders. It is submitted that the Tribunal has erred in not appreciating the word amount realized used by legislature in Regulation 4 (3) of the Regulations and has only taken into consideration the sale of the tangible good i.e. the car though the appellant remained Liquidator for a long period of one year and 84 days an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d which we have already mentioned hereinbefore. 12. Thus in view of the aforesaid facts and circumstances, the present appeal succeeds and the impugned order is hereby set aside whereby the application filed by the appellant bearing I.A. No. 893 of 2020 has been dismissed. The matter is remanded back to the Learned Tribunal which restoring the application I.A. No. 893 of 2020. The parties are directed to appear before the Tribunal on 20.03.2023. It is made clear that the appellant shall give a break-up of the sales that has been made during the period of liquidation i.e. within six months, next 6 months, next one year etc. and the Tribunal shall take into consideration the sales effected by the Liquidator in terms of Clause 2.1 of the circu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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