Tribunal approves new Resolution Professional to address concerns of Creditors' Committee members

The Tribunal allowed the application for the replacement of the Resolution Professional under section 22, following dissatisfaction among the CoC members with the current RP's actions and non-compliance with legal procedures. The majority CoC voting share supported the replacement, leading to the appointment of a new RP, Mr. Debrath Rana. The decision aimed to address concerns raised by the Ex-Directors and ensure the smooth functioning of the resolution process, reflecting the Tribunal's focus on effective management of the proceedings.

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Issues:
1. Replacement of Resolution Professional under section 22.
2. Allegations of non-compliance with the procedure of law by the Resolution Professional.
3. Decision on the application for replacement of Resolution Professional.

Analysis:
1. The application was filed under section 22 for the replacement of the Resolution Professional. The CoC, with a majority voting share of 97.98%, passed a resolution to remove the existing RP and replace them with another RP. The Resolution Professional had refused to put the agenda of replacement for voting, leading to dissatisfaction among the CoC members. The Tribunal allowed the application and replaced the current Resolution Professional with a new one, Mr. Debrath Rana.

2. The Ex-Directors, through their Learned Counsel, raised concerns about the behavior and actions of the Resolution Professional. They highlighted that the RP was not following the procedure of the law, which was also being challenged in an appeal pending before the Hon'ble National Company Law Appellate Tribunal. The CoC had expressed disapproval of the RP's behavior and actions at various instances, indicating a lack of confidence in the RP's abilities. Based on the submissions and documents presented, the Tribunal found merit in the concerns raised and approved the replacement of the Resolution Professional.

3. The Tribunal considered the evidence presented, including minutes reflecting the CoC's dissatisfaction with the RP's conduct, and an email from the majority CoC Member expressing the need for the RP's replacement due to a lack of authority. The decision to replace the Resolution Professional was made in light of the documented disapproval of the RP's behavior and actions, ensuring the smooth functioning of the resolution process. The Consent Form 'AA' was also annexed with the application, further supporting the decision to replace the RP.

In conclusion, the Tribunal allowed the application for the replacement of the Resolution Professional, considering the lack of confidence in the current RP's abilities and non-compliance with legal procedures. The decision aimed to facilitate the resolution process and ensure effective management of the proceedings.

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