TMI Blog2021 (12) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... and as per the Regulation 21A of the Liquidation Regulations - HELD THAT:- On conjoint reading of Regulation 21A (2) and the Regulation 4 (2) (b) Clarification of the Liquidation Regulations, it is evident that when a secured creditor realizes its security interest, it shall pay the liquidation costs which includes the liquidator's fees. Further, in the case where a liquidator distributes any amount, which is not realised by him, he shall be entitled to a fee corresponding to the amount distributed by him. As to the facts of the present case, it is seen that the Respondent has no objection in allowing the application subject to compliances of Liquidation Regulations. Petition disposed off. - IA/1456(ND) 2021 in (IB)/2590(ND) 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmit the Applicant, being the secured creditor, to sell/realize the above-mentioned Mortgaged Property, under the aegis of this Hon'ble Tribunal; and e. pass any other or further orders as this Hon'ble Court may deem fit and proper in the interest of justice and equity. 2. That CIRP was initiated against the Corporate Debtor vide order dt. 28.11.2019 and Shri Navjit Singh was appointed as the IRP. The Applicant is one of the Financial Creditors of the Corporate Debtor with a voting share of 59.74%. The Corporate Debtor is a Corporate Guarantor of the credit facilities availed by M/s. Solo Metals Pvt. Ltd. ( Borrower ) and sanctioned by Applicant Bank. 3. Further, liquidation was initiated vide order dt. 29.07.2020 and Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it has no objection if the Applicant realized security interest but they have follow the procedure laid down under Regulation 2 (ea), 2A, 21 A, 37 of the Liquidation Regulations and Section 52 of the Code. That the perusal of the provisions clearly indicates that the secured creditor is liable to pay the liquidation costs and fees in full. 8. We have heard the Ld. Counsel for the Applicant and the Respondent and perused the averments made in the application and the reply. 9. During the course of arguments, the Applicant submitted that they shall comply and pay the liquidation cost and workman dues from the prospective sale proceeds of the Mortgaged Property as specified under Section 53 of the Code. In respect of liquidator's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be, as soon as the amount payable under this sub-regulation is certain and so informed by the liquidator Regulation 4 (2) (b) Clarification For the purposes of clause (b), it is hereby clarified that where a liquidator realises any amount, but does not distribute the same, he shall be entitled to a fee corresponding to the amount realised by him. Where a liquidator distributes any amount, which is not realised by him, he shall be entitled to a fee corresponding to the amount distributed by him. 11. On conjoint reading of Regulation 21A (2) and the Regulation 4 (2) (b) Clarification of the Liquidation Regulations, it is evident that when a secured creditor realizes its security interest, it shall pay the liquidation costs w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
