Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Official Liquidator Must Follow Ethical Principles and Fairness While Discharging Duties Under IBC: Delhi HC
Insolvency & Bankruptcy Code
The Delhi High Court emphasized the importance of ethical conduct and fairness for official liquidators in discharging their duties under the Insolvency and Bankruptcy Code (IBC), 2016. Sundaresh Bhat challenged a two-year suspension of registration by the IBBI Disciplinary Committee. \r
The court upheld the IBBI's decision, highlighting the pivotal role of the liquidator in maximizing asset value for creditors. Despite leniency on one charge, the court found the petitioner guilty of others, including misconduct regarding fee structures. It clarified that while liquidators enjoy autonomy, they must act transparently and ethically in the stakeholders' best interests. \r
Justice Subramonium Prasad stressed the liquidator's paramount role in insolvency proceedings and upheld the Board's conclusion on the petitioner's misconduct. The writ petition was dismissed.
