Financial Creditor Granted Substitution of Resolution Professional for Impartiality

The Tribunal granted the Financial Creditor's request to substitute the proposed Interim Resolution Professional due to concerns of potential bias arising from his prior employment at SBI. Acknowledging the risk of conflict of interest, the Tribunal allowed for the appointment of a different individual to ensure impartiality in the resolution process. The hearing was deferred to 15.01.2020 to facilitate compliance with the directive for a new Resolution Professional.

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Issues:
- Objection raised regarding the proposed Interim Resolution Professional's potential bias due to prior employment at SBI.

Analysis:
The Respondent raised a specific objection concerning the proposed Interim Resolution Professional, Mr. Shailesh Verma, citing his prior employment at SBI for over 39 years until his retirement in 2016. The Respondent expressed apprehension of bias due to Mr. Verma's long-standing association with SBI, questioning his ability to act fairly and independently in the resolution process. The Petitioner did not contest this fact in their rejoinder, indicating agreement with the concerns raised by the Respondent.

In light of the facts presented, the Tribunal acknowledged the potential conflict of interest and bias that could arise from Mr. Verma's background and employment history at SBI. Consequently, the Tribunal granted the Financial Creditor an opportunity to fulfill its statutory obligation by substituting the proposed Interim Resolution Professional with a different individual who could ensure impartiality and act as an independent decision-maker in the resolution proceedings. The Tribunal deferred the hearing to a later date, specifically 15.01.2020, to allow the necessary compliance with the directive to appoint a new Resolution Professional.

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