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TMI Blog2024 (3) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... r Jain ( Oral ) This appeal is directed against the order dated 28.09.2022 passed by Adjudicating Authority (National Company Law Tribunal, Chandigarh Bench) by which an application bearing I.A. No. 893/2020 filed by the appellant under Section 60 (5) (c) of Insolvency & Bankruptcy Code, 2016 (in short 'Code') read with Rule 11 of the NCLT Rules, 2016 has been dismissed. 2. In brief, Allahabad Bank (Financial Creditor) filed an application under Section 7 of the Code against M/s Supreme Tex Mart Ltd. (earlier known as Supreme 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2020 while awarding fee only in regard to the asset (namely, a car) which was sold for a sum of Rs.2,60,000/-. Aggrieved against the order dated 27.08.2020, the appellant filed I.A. No. 893 of 2020 under Section 60 (5) of the Code before the Tribunal. The said application has now been dismissed by the impugned order dated 28.09.2022 and hence, the present appeal. 6. Counsel for the appellant has submitted that the case of the appellant is covered by the pre-amended Regulation 4 of the Regulations as his claim starts from 08.08.2018 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeds from the sale/realization from the liquidation of assets which are not liquid. Therefore, the liquidator is not entitled to a fee on realisation for these liquid assets and is entitled to a fee only on distribution. Clarification: 'Amount realised' shall mean amount realised from assets other than liquid assets such as cash and bank balance including term deposit mutual fund, quoted share available on start of the process after exploring compromise and arrangement, if any." 8. On the basis of the aforesaid, it is contended that it has now 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 ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 first six months, next 6 months, next one year and thereafter etc. 11. However, this aspect of the matter has not been taken into consideration either by the present Liquidator or by the Ld. Tribunal whereas it is very much clear not only from Regulation 4 (3) (unamended provision) that the amount realized is to be considered but also from Circular dated 28.09.2023 by which the term "amount realized" has been further clarified 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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