Resolution professional substitution, revised remuneration, and fast-track insolvency treatment follow prolonged process and loss of creditor confidence.

Where the Committee of Creditors loses confidence in the existing resolution professional and the insolvency process becomes protracted, the Tribunal may approve substitution, direct handover of records, and require cooperation from the outgoing professional. The outgoing resolution professional remains entitled to reasonable remuneration for statutory work already performed, but the fee and related costs may be revised downward according to the circumstances and the nature of the services rendered. In a delayed matter, the process may also be directed to proceed on a fast track basis, with a time-bound completion period of ninety days from the order.

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Issues: (i) whether the existing resolution professional should be replaced and a new resolution professional appointed; (ii) what fees and related costs were payable to the outgoing resolution professional; and (iii) whether the insolvency process should be treated as a fast track corporate insolvency process in view of the delay.

Issue (i): whether the existing resolution professional should be replaced and a new resolution professional appointed.

Analysis: The Committee of Creditors had lost confidence in the existing resolution professional and had resolved to substitute him with a new professional. The order records the stalemate between the stakeholders, the prolonged conduct of the process, and the request for substitution with the consent of the proposed replacement. In these circumstances, the Bench accepted the substitution and directed handover of records and cooperation by the outgoing professional.

Conclusion: The resolution professional was replaced and a new resolution professional was appointed.

Issue (ii): what fees and related costs were payable to the outgoing resolution professional.

Analysis: The Bench recognised that the outgoing professional had undertaken the statutory tasks required under the insolvency framework and held that he was entitled to reasonable remuneration. The claimed amounts were, however, revised downward by the Bench after considering the circumstances and the nature of the work performed. The revised remuneration and costs were fixed for payment by the Committee of Creditors and the corporate debtor.

Conclusion: The outgoing resolution professional was held entitled only to the revised reasonable fees and costs fixed by the order.

Issue (iii): whether the insolvency process should be treated as a fast track corporate insolvency process in view of the delay.

Analysis: Taking note of the chequered history of the matter and the time lost by the parties, the Bench invoked the approach approved in the cited appellate decision and treated the case as deserving of fast track treatment. The order directed completion of the process within ninety days from the date of the order.

Conclusion: The matter was directed to proceed as a fast track corporate insolvency process with a ninety-day completion period.

Final Conclusion: The application succeeded in securing substitution of the resolution professional, fixation of revised remuneration, and conversion of the process into a fast track insolvency proceeding.

Ratio Decidendi: Where the Committee of Creditors has lost confidence in the existing resolution professional and the process has become protracted, the Tribunal may order substitution, fix reasonable remuneration for work already performed, and direct faster completion of the insolvency process in appropriate circumstances.

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