A disciplinary order of suspension against a Liquidator does not automatically invalidate concluded liquidation processes or reverse crystallized third-party rights, especially when the auction and sale have already attained finality through judicial confirmation and the Corporate Debtor has subsequently been dissolved.

Order Pronounced On: 24.03.2026

Coram:

Mr. Praveen Gupta. : Member (Judicial)

Mr. Ashish Verma : Member (Technical)

Appearances:

Sh. Pranav Gupta with : For the Applicant

Ms. Unnati Chauhan &

Ms. Sanchita Jain, Advs.

Sh. Yash Tandon, Adv. : For the Liquidator,

Mr. Alok Kumar Kuchhal

present in person

ORDER

1. This application has been filed by the Applicants, who are the suspended directors of Ratandeep Infrastructure Private Limited (hereinafter referred to as the “Corporate Debtor”) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016, on 01.09.2024 seeking appropriate directions against Respondent No. 1, Mr. Alok Kumar Kuchhal, Liquidator (hereinafter referred to as the “Respondent”), praying for the following reliefs:

a. Allow the present Application and issue appropriate order(s)/direction(s) for a stay in distribution of funds & creating 3rd party rights on the assets of the Corporate Director recently sold to AKJ Realtech Private Limited till further directions and/or;

b. Issue structure against the Respondent for misleading this Hon’ble Tribunal with false submissions & mala fide conducts & continuing holding position even after being not eligible for the same.

c. Issue order against the liquidator for misleading this Hon’ble Tribunal & further obtained the order of Sale, Transfer of assets, and further jeopardise the whole CIRP & Liquidation Process.

d. Allow the present Application and issue appropriate order(s)/direction(s) for the removal of Liquidator in compliance with the order passed by the Disciplinary committee of IBBI dated 16th February 2024.

e. Pass such other and further orders as this Hon’ble court may deem fit and proper in the facts and circumstances of the case.

2. The Applicants assert that the Respondent has conducted the CIRP and the liquidation process in a prejudicial, biased, and non-transparent manner, in violation of the IBBI (Liquidation Process) Regulations, 2016. It is their case that despite being closely related with one of the suspended directors of the Corporate Debtors, Mr. Surendra Aggarwal, through his son, Mr. Prasoon Aggarwal, the Respondent continued to function as IRP, RP, and later as Liquidator, while concealing material facts regarding his ineligibility and lack of independence. This directorship was held from 30.09.2020 to 26.03.2021 during the CIRP of the Corporate Debtor, which is directly in conflict with the independence of a Resolution Professional, which is required for conducting CIRP and later liquidation in a fair and judicious manner.

3. It is pleaded that the Respondent failed in his duty to endeavour resolution of the Corporate Debtor as a going concern and instead proceeded towards liquidation and auction of assets despite viable alternatives and a possibility of a scheme under Section 230 of the Companies Act, 2013. According to the Applicants, such conduct was mala fide and resulted in an undervalued sale of the Corporate Debtor’s assets.

4. The Applicants further contend that the Respondent concealed from this Tribunal the pendency of an IBBI investigation under Section 218, as well as a Show Cause Notice dated 13.10.2023 issued to him, alleging violations of the Code and Regulations. It is also alleged that the Respondent failed to disclose that he was suspended by the Disciplinary Committee (DC) of the IBBI on 16.02.2024 on account of compromising his independence by accepting a directorship in M/s Silvertoan Papers Limited, where the director was a significant shareholder in the Corporate Debtor, and one director of the Corporate Debtor held shares in Silvertoan Papers Limited.

5. The Application states that the Respondent’s acceptance of a directorship in M/s Silvertoan Papers Limited during the CIRP was in violation of Regulation 3(1) of both the IRP and Liquidation Regulations, as it rendered him a related and non-independent party. The Applicants rely on extensive extracts of the IBBI DC order dated 16.02.20