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2022 (12) TMI 97 - AT - Insolvency and BankruptcyCost of CIRP / Liquidation - Liability of operational creditors - Distribution of proceeds from the sale of the liquidation assets - Direction to contribute proportionately in accordance with the voting share towards CIRP /Liquidation costs - section 53 of IBC - HELD THAT:- This is a clear case of misusing the provisions of the Code both by the Operational Creditor who has initiated the CIRP and the RP also - the Appellants are small suppliers and they don’t want to be burdened with additional liability as their business is in a very bad shape and they have lost already a crore plus. We are unable to agree with the Adjudicating Authority that the Operational Creditors are to bear the cost of CIRP/Liquidation and hence, we set aside the impugned order to the extent para 9.IX as appearing supra and rest part of the impugned order we uphold. Let Liquidation be continued and let amount be realized during Liquidation and be distributed in accordance with section 53 of the Code. Appeal disposed off.
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