Imp. Rulings - Role of RP & Liquidator
Index;
High Court Delhi (2024.05.27) in Sundaresh Bhat Vs. Insolvency and Bankruptcy Board of India [Neutral Citation 2024 DHC 4546, W.P.(C) 14389/2022]
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1. High Court Delhi (2024.05.27) in Sundaresh Bhat Vs. Insolvency and Bankruptcy Board of India [Neutral Citation 2024 DHC 4546, W.P.(C) 14389/2022]
# 15. The role of the liquidator in insolvency proceedings is paramount to the entire process. The liquidation proceedings revolve around the official liquidator and he has to discharge his functions keeping in mind the benefit of the company which is under liquidation. They must adhere to the highest standards of ethical conduct, diligence, and impartiality to uphold the integrity of the process. As fiduciaries, they are entrusted with the responsibility of managing the affairs of insolvent entities and any hint of impropriety or conflict of interest could undermine the credibility of the entire insolvency process. A liquidator is entrusted with safeguarding the interests of all parties involved, navigating complex legal and financial terrain with complete transparency. With such authority comes a heightened obligation to exercise discretion judiciously and in the best interests of all stakeholders involved. Therefore, while the official liquidator enjoys a significant degree of autonomy, they are bound to wield their power responsibly and ethically within the confines of the IBC framework. Upholding ethical principles and demonstrating unwavering commitment to fairness are paramount for an official liquidator to effectively discharge their duties under the IBC. At the same time, it is imperative that a liquidator is given the autonomy that is required to take decisions that may help in actualizing the real value of the assets or materials that are being liquidated.
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