Case Details: Omkara Asset Reconstruction (P.) Ltd. vs. Amit Vijay Karia - [2025] 181 taxmann.com 173 (NCLAT-New Delhi)[01-12-2025]
Judiciary and Counsel Details
- N. Seshasayee, Judicial Member & Arun Baroka, Technical Member
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Abhijeet Sinha, Sr. Adv., Ms Kiran Sharma, Ms Niharika Sharma, Somdutta Bhattacharya, Saikat Sarkar & Ms Heena Kochar, Advs. for the Appellant.
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Alam Khan for the Respondent.
Facts of the Case
In the instant case, the Adjudicating Authority passed an order for liquidation of the corporate debtor and appointed second respondent as liquidator, who was neither Resolution Professional (RP) appointed during the CIRP, nor was candidate of CoC’s choice.
The appellant, who had about 98% voting share in the CoC, preferred an instant appeal asserting that right to appoint liquidator rests with the CoC.
NCLAT Held
The NCLAT held that only the CoC has the authority to select candidate for replacing RP for purposes of section 34(4)(c) of the IBC, even though authority to formally appoint such RP as selected by procedure contemplated in section 27 rests with the Adjudicating Authority.
The NCLAT held that once the CoC names a liquidator and IBBI confirms it, the Adjudicating Authority is required to appoint liquidator named by the CoC. Therefore, order of the Adjudicating Authority appointing liquidator was to be set aside and once the IBBI confirms liquidator named by the CoC, the Adjudicating Authority is required to appoint it as liquidator.
List of Cases Reviewed
- Order of National Company Law Tribunal, Indore Bench I.A.(LIQ) No.1/MP/2025 in C.P. (IB) No.53/MP/2023 and I.A.(LIQ) No.3/MP/2024 in C.P. (IB) No.54/MP/2023, dated 11-06-2025 (para 15) reversed
List of Cases Referred to
- Manish Jaju v. Committee of Creditors [C.A.(AT)(Ins.) 1165 of 2025, dated 1-8-2025] (para 3)
- Moore v. Dempsey 261 US 86 (1923) (para 13)
- Y. Balaji v. Karthik Desari [2023] 150 taxmann.com 329/179 SCL 49 (SC) (para 13).
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