Supreme Court Seeks Stakeholder's Response in Liquidator’s Appeal Against Bank of India.


22 September 2025 Bankruptcy & Insolvency Law >> Business & Commercial Law  

The Supreme Court on September 22, 2025, heard a chain of appeals submitted by Immaneni Eswara Rao, who was appointed as the liquidator of Ramanasree Consumer Products Pvt. Ltd. The problem concerns the expenses and costs incurred in the process of liquidation.

Rao had previously moved the National Company Law Tribunal (NCLT), Hyderabad, requesting directions for financial contributions towards liquidation expenses under Regulation 24 of the Insolvency and Bankruptcy Board of India (IBBI) Regulations. He approximated that an amount of Rs. 1.5 lakh a month would be needed in order to cover incidental expenses up to the end of liquidation. He had also sought leave to relocate for dissolution of the corporate debtor under Section 54 of the Insolvency and Bankruptcy Code (IBC), 2016, once the distribution of funds was completed.


 

 
 
 

The NCLT, however, refused relief. Rao then approached the National Company Law Appellate Tribunal (NCLAT), Chennai, which upheld the order of the NCLT. Having no other choice, he went to the Supreme Court by way of several appeals against these orders.

A Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan recorded that the Stakeholders' Consultation Committee had, in its December 26, 2024, meeting, decided to set a lump sum of Rs. 2 lakh for the liquidator and his team for the whole process. The Court noted that this put the appellant in a precarious situation, given the protracted and intricate nature of liquidation.

While condoning the lapse in re-filing the appeals, the Supreme Court directed notice to the Stakeholders' Consultation Committee and asked them to be heard before passing further orders. The case will now come up in two weeks.


Section 54, INSOLVENCY AND BANKRUPTCY CODE - 2016  

INSOLVENCY AND BANKRUPTCY CODE, 2016