Agastu Industries Limited, a medium sized company had been facing financial difficulties for the past few years due to poor management and an inability to cope with its increasing operational costs. Also the company's fu

Agastu Industries Limited, a medium sized company had been facing financial difficulties for the past few years due to poor management and an inability to cope with its increasing operational costs. Also the company's funds were being used for personal expenses of the directors like purchase of high end vehicles and other non-business related expenditures. These actions led to a significant depletion of company's cash reserves. The company had to finally face a liquidation order from NCLT. The NCLT appointed Mr. Jayant Nanda as liquidator to wind up the company and liquidate its assets. However, it came to the light that Mr. Jayant Nanda had prior business relationship with one of the major creditors PQR Corporation and he is giving preferential treatment to PQR Corporation by prioritizing its claims over those of other creditors and possibly negotiating assets sales at lower prices to benefit PQR Corporation. A group of creditors filed a petition in the Hon'ble Delhi High Court for removal of Mr. Jayant Nanda as the liquidator accusing him of conflict of interest. Discuss the validity of the petition in the light of the provisions of the Companies Act, 2013.