IBBI notifies the Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2020 wherein under Reg. 4 (2) (b) clarification has been inserted.
Under the respective amendment, the committee of creditors has been directed to fix the fee payable to the liquidator. Further, it has been clarified about the percentage of liquidator’s fees and the amount distributed by the liquidator from the amount realised in cases where the fee has not been fixed by the CoC.
Furthermore, amendment clarifies that in cases where a liquidator realises any amount, but does not distribute the same, he shall be entitled to a fee corresponding to the amount realised by him. Likewise, where a liquidator distributes any amount, which is not realised by him, he shall be entitled to a fee corresponding to the amount distributed by him. This decision has been take after observing instances where a liquidator realises the amount while another liquidator distributes the same to stakeholders.