NCLAT Approves RP Change for Corporate Debtor under Insolvency & Bankruptcy Code

The National Company Law Appellate Tribunal (NCLAT) approved the replacement of the Interim Resolution Professional (IRP) with a Resolution Professional (RP) for the Corporate Debtor under the Insolvency & Bankruptcy Code, 2016. Mr. Saurabh Tikmani was appointed as the RP following the CoC's decision and his written consent. The NCLAT directed the company to remain a going concern during the appeal process and approved Mr. Tikmani's appointment, finding no inhibiting circumstances. The Interlocutory Application in CP (IB) No.2979/2018 was disposed of accordingly.

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Issues:
- Replacement of Interim Resolution Professional (IRP) with Resolution Professional (RP) under sections 22(2) and 22(3)(b) of the Insolvency & Bankruptcy Code, 2016 (IBC).
- Challenge to the order of admission dated 16.12.2019 before the Hon'ble National Company Law Appellate Tribunal (NCLAT).
- Approval for the appointment of Mr. Saurabh Tikmani as RP of the Corporate Debtor.

Analysis:
1. The Interlocutory Application (IA) was filed by Axis Bank Limited, representing the Committee of Creditors (CoC) of the Corporate Debtor, seeking approval to replace Mr. Hemant Shah, the IRP, with Mr. Saurabh Tikmani as the RP under sections 22(2) and 22(3)(b) of the IBC. The Adjudicating Authority had earlier admitted the petition under section 9 of the IBC and initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, appointing Mr. Harshul Anilkant Shah as the IRP.

2. A challenge was made by Mr. Hemant Zaveri against the order of admission dated 16.12.2019 before the Hon'ble NCLAT. The NCLAT issued directions to ensure the company remains a going concern during the appeal process. The first meeting of the CoC resolved to appoint Mr. Saurabh Tikmani as the RP in place of Mr. Harshul Anilkant Shah, and Mr. Tikmani's appointment was approved by the Bench after considering the facts and submissions made by the parties.

3. The approval for the appointment of Mr. Saurabh Tikmani as the RP of the Corporate Debtor was granted by the Bench after the CoC's decision and the submission of Mr. Tikmani's written consent. The Bench found no inhibiting circumstances for Mr. Tikmani's appointment and disposed of the Interlocutory Application accordingly. The IA was filed in CP (IB) No.2979/2018 and was disposed of as per the approval granted for Mr. Tikmani's appointment as RP of the Corporate Debtor.

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