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2022 (1) TMI 718 - AT - Insolvency and BankruptcySeeking replacement of Liquidator - grounds pleaded in the appeal for replacing the liquidator are that the liquidator did not carryout the process of liquidation insofar as sale of assets through the e-auction is concerned, in a fair and transparent manner - it is also alleged that the liquidator did not discuss the process and details of liquidation with the stakeholders as well as Appellants, who are also stakeholders in the liquidation proceedings - HELD THAT:- In the present case, from third meeting of SCC onwards, it was decided that the Corporate Debtor or its business is not to be sold as a going concern. Hence, a period of prescribed time limit for completion of liquidation of 365 days should be counted from the date of 3rd meeting of SCC held on 9.11.2020. Since there was no “lockdown” enforced by the authorities in the period after 9.11.2020, no exclusion of time under Regulation 47-A is necessary. With passage of more than 365 days after 9.11.2020 now, we feel that the liquidation of the Corporate Debtor should have been completed by now. Therefore, liquidation of the Corporate Debtor should be done as quickly as possible to ensure that the assets of the Corporate Debtor do not undergo deterioration resulting in loss of their value. The concerns of the stakeholders, who are Appellants in this appeal, are not entirely misplaced and that the liquidation process has gone over a long time with rather sketchy results - the appellants have not been able to convincingly advance their arguments for replacement of the liquidator, particularly when no material irregularities have been found in the functioning of the liquidator. The liquidation process which has now gone on for a long time should be completed as early as possible, if not already completed. The inordinate and unexplained delay between the dates decisions are taken in SCC meetings regarding e-auctions and holding of e-auctions are a cause of concern, and they should be reduced to the minimum. Since the liquidation process has been prolonged and the record of SCC meetings show there is a substantial amount of funds that are being spent in liquidation, the liquidation costs should be restricted to the payment of actual costs incurred in liquidation process. Appeal disposed off.
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