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TMI Blog2022 (2) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... resolution process of Biodiversity Conservation India Private Limited; iii.) Declare that the Financial Creditor is liable to pay liquidation costs for the liquidation process of Biodiversity Conservation India Private Limited only from 04.04.2021; iv.) Declare that the Financial Creditor is only liable to pay the liquidation costs in proportion to the amounts recovered by it towards its claim of Rs. 33,64,47,700/'- in the liquidation of Biodiversity Conservation India Private Limited and after such amounts are recovered from the proceeds of the sale of the liquidation assets and not prior to realisation from sale; v.) Declare that the liquidation costs payable by the Financial Creditor shall be proportion to the proceeds from sale of liquidation assets realised and in terms of Section 34(8) and (9) and Section 53(3) of the Insolvency and Bankruptcy Code, 2016 and Regulation 4 and Regulation 42 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 and not in proportion to the admitted claim of the Financial Creditor of Rs. 33,64,47,700/-. vi.) Direct the Respondent to share with the Financial Creditor Financial Information pertaining t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ight Lakhs Sixty-Four Thousand Five Hundred and Fifty Only) towards its share of liquidation costs payable under Regulation 21A of the IBBI (Liquidation Process) Regulations, 2016, to the Corporate Debtor's Bank Account. It is also submitted that the Applicant being a Secured Financial Creditor is entitled for certain information and copies of certain documents from the Liquidator and when the Applicant sought for the same, the Liquidator refused to share the information and to furnish the documents sought for by the Applicant. Hence, the I.A. 5. The learned Counsel for the Applicant while placing reliance on the first proviso to Regulation 21A(2)(b) of the IBBI (Liquidation Process) Regulations, 2016 in support of the I.A. averments in respect of the issue of its liability to pay its share of liquidation costs contended as under: i.) The Applicant is not required to pay the insolvency resolution process costs at all. ii.) The Applicant is required to pay the liquidation costs only with effect from 04.04.2021 i.e., the date on which its claim was admitted. iii.) The Applicant is required to pay the liquidation costs in proportion to the amounts actually recovered by it b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (1) with equal ranking, if disrupting the order of priority under that sub-section shall be disregarded by the liquidator. (3) The fees payable to the liquidator shall be deducted proportionately from the proceeds payable to each class of recipients under sub-section (1), and the proceeds to the relevant recipient shall be distributed after such deduction. Explanation. - For the purpose of this section- (i) it is hereby clarified that at each stage of the distribution of proceeds in respect of a class of recipients that rank equally, each of the debts will either be paid in full, or will be paid in equal proportion within the same class of recipients, if the proceeds are insufficient to meet the debts in full; and (ii) the term "workmen's dues" shall have the same meaning as assigned to it in section 326 of the Companies Act, 2013 (18 of 2013)." Regulation 21A of the IBBI (Liquidation Process) Regulations, 2016: "21A. Presumption of security interest. (1) A secured creditor shall inform the liquidator of its decision to relinquish its security interest to the liquidation estate or realise its security interest, as the case may be, in Form C or Form D of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st and once monies are received by it. 9. In this view of the matter, we reject the contention of the Applicant in respect of its liability to pay its share of liquidation costs in terms of the impugned letter dated 18.07.2021. 10. With regard to the other relief claimed by the Applicant for furnishing of information/documents by the Liquidator, the Liquidator submitted as under: "B. INFORMATION/DOCUMENTS SOUGHT BY THE APPLICANT: 31. The Applicant has sought certain documents as set out in paragraph 39 at page 31 of the Application. It is submitted that these documents can be divided into two categories - (a) those which are covered under Regulation 5 of the Liquidation Regulations; and (b) those which are covered under Regulation 6 of the Liquidation Regulations. 32. The Respondent, as a stakeholder, is entitled to certain documents under Regulation 5(3) of the Liquidation Regulations. These documents include the preliminary report, all progress reports, sale reports, and minutes of stakeholder meetings, i.e., the documents mentioned as points (a) to (c) in paragraph 39 at page 31 of the Application. The Respondent has no difficulty in providing the same to the Applicant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion sales. This would be adverse to all stakeholders." 11. It is not in dispute that the Applicant is a claimant and its claim also admitted to an extent of Rs. 33,64,47,700/-. We have already held herein above that the Applicant whose claims are admitted by the Liquidator to the said extent, is liable to pay its share of the liquidation costs without reference to the date of admission of its claims and without reference to the monies to be received by it. Hence, we are of the view that though the Applicant has chosen to stand outside the liquidation proceedings and to realise its security interest, and not a stakeholder, it is also entitled for the same information and documents as entitled by a stakeholder of the liquidation process. Therefore, the Liquidator is liable to share the information and furnish the documents to the Applicant, on par with any other stakeholder of the liquidation process. 12. In the circumstances and for the aforesaid reasons, the instant I.A. is disposed of as under: i.) The various reliefs claimed with regard to the liability of the Applicant to pay its share of the costs as detailed in the letter dated 18.07.2021 of the Liquidator are rejected. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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