Disposed

In the matter of Eastern Gases Ltd. [IA(IBC)1084(KB)2023 In CP(IB)-482(KB)2017]

NCLT18 Oct 2023IA(IBC)1084(KB)2023 In CP(IB)-482(KB)2017

Case brief

AI extract

What is this about?

The Tribunal directed the Liquidator of Eastern Gases Ltd. to file a detailed report explaining the maintenance of three bank accounts during the liquidation period, which violated the requirement to open only a single account under Regulation 41. An affidavit justifying these transactions was issued within two weeks.

What did the court decide?

Directed the Liquidator to file a detailed report and an affidavit within two weeks explaining the maintenance of multiple bank accounts during liquidation.

In the matter of Eastern Gases Ltd. [IA(IBC)1084(KB)2023… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL KOLKATA BENCH, (Court – II) KOLKATA

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IA(IBC)1084(KB)2023 In CP(IB)/482(KB)2017

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An application under section 54 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

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In the matter of:

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Eastern Gases Ltd. ( CIN: L40200WB1995PLC068251) ; Represented by its Liquidator –

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Mr. Kuldeep Verma, …. Applicant/Liquidator

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Date of Hearing: 28/08/2023 Coram: Smt. Bidisha Banerjee : Member (Judicial) Shri Balraj Joshi : Member (Technical) Appearances through hybrid mode: For Liquidator : Mr. Rahul Auddy, Adv. Mr. Aditya Gooptu, Adv.

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F O R C L A R I F I C A T I O N

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IA(IBC)/1084(KB)2023 was reserved for order on 28/08/2023.

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Vide order dated 02/08/2023, the Liquidator was asked to confirm closure of all the accounts relating to liquidation period. The Liquidator vide his affidavit affirmed on 23/08/2023 has stated in paragraph 5 at page 5 of the affidavit that the Liquidator operated only a single bank account for the purpose of liquidation with Central Bank of India, Camac Street Branch being account no. 3703923804 in the name of the Corporate Debtor, “Eastern Gases Limited - In Liquidation”. It is,

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Page 1 of 2

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IN THE NATIONAL COMPANY LAW TRIBUNAL KOLKATA BENCH, (Court – I) KOLKATA

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IA(IBC)1084(KB)2023 In CP(IB)/482(KB)2017

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however, noted that during the period, that is, from 06/09/2018 to 07/06/2023 other accounts have also been operated and the transactions were done in these accounts. We found that during the liquidation period, the Liquidator has maintained three different accounts, which is in contravention of stipulation contained in regulation 41 of the Liquidation Process Regulations, 2016.

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In view of the above, we hereby direct the Liquidator to file a detailed report as to why those accounts have been maintained during the liquidation process, while the regulation 41(1) of Liquidation Process Regulations, 2016 clearly specifies that: “ Liquidator shall open a bank account in the name of the corporate debtor followed by the words ‘in liquidation’, in a scheduled bank, for the receipt of all moneys due to the corporate debtor ”.

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Therefore, each of the transaction made in other accounts during the liquidation process shall be explained so as to justify the necessity of maintaining these accounts which though is not foreseen in the extant Regulation. An affidavit be filed in this regard within a period of two weeks of issue of this order.

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