Tribunal appoints Kuldip Kumar Bassi as Resolution Professional for Lakshmi Energy and Foods Limited

The Tribunal allowed the application by the Committee of Creditors and appointed Mr. Kuldip Kumar Bassi as the Resolution Professional for M/s Lakshmi Energy and Foods Limited, replacing the Interim Resolution Professional. Mr. Bassi was directed to take charge of all records and assets, fulfill his duties under the Insolvency and Bankruptcy Code, and submit progress reports every fortnight. The Tribunal disposed of the application, instructing the outgoing IRP to hand over all relevant materials promptly.

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Issues: Appointment of Resolution Professional

Analysis:
The Punjab National Bank, as a Committee of Creditors (COC) member, filed an application seeking the appointment of a Resolution Professional (RP) in place of the existing Interim Resolution Professional (IRP) for M/s Lakshmi Energy and Foods Limited under Section 22(2) & (3)(b) of the Insolvency and Bankruptcy Code, 2016. The COC members failed to reach an agreement on the continuation of the IRP as RP, and the IRP expressed his inability to continue in the role. Consequently, in a meeting held on 30.01.2020, the COC resolved with a 93.58% voting percentage to appoint Mr. Kuldip Kumar Bassi as the RP.

Legal Provisions:
Under sub-section (4) of Section 9 of the Code, the Adjudicating Authority is required to forward the proposed RP's name to the Insolvency and Bankruptcy Board of India for confirmation. However, if there are no adverse records against the proposed RP, the Adjudicating Authority may appoint the RP without seeking confirmation from the IBBI. The Law Research Associate confirmed that there were no adverse records against Mr. Kuldip Kumar Bassi, the proposed RP, based on the database of Insolvency and Bankruptcy of India.

Judgment:
Considering the circumstances and the absence of adverse records, the Tribunal allowed the application and appointed Mr. Kuldip Kumar Bassi as the RP, replacing Mr. Ravinder Agarwal, the IRP. The Tribunal directed Mr. Agarwal to hand over all records and assets to Mr. Bassi promptly. Mr. Bassi was instructed to take charge of the records and assets and fulfill his duties as per the Code and Regulations. Additionally, Mr. Bassi was mandated to submit regular progress reports to the Tribunal every fortnight. Consequently, the Tribunal disposed of the application, and a copy of the order was directed to be supplied to the relevant parties.

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