Approval of New Resolution Professional in Corporate Insolvency Process

The Tribunal approved the replacement of the Interim Resolution Professional (IRP) with a new Resolution Professional for the Corporate Insolvency Resolution Process (CIRP) of a company. Shri Purshotam Gaggar was appointed as the new Resolution Professional, replacing Shri Vakati Balasubramaniam Reddy. The decision was supported by the Committee of Creditors with 100% voting share. The outgoing IRP was directed to hand over documents promptly, and the new RP was tasked with fulfilling duties diligently. The CoC was instructed to settle dues and costs as per legal provisions and a Supreme Court judgment, concluding the process of replacing the IRP.

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Issues:
Application under Section 22(3)(b) of the Insolvency and Bankruptcy Code, 2016 for replacement of Interim Resolution Professional by Resolution Professional.

Analysis:
The Punjab National Bank filed an application under Section 22(3)(b) of the Insolvency and Bankruptcy Code, 2016, seeking the replacement of the Interim Resolution Professional (IRP) with a Resolution Professional for the Corporate Insolvency Resolution Process (CIRP) of a specific company. The application was supported by the Committee of Creditors (CoC) with a resolution passed in a meeting where Shri Purshotam Gaggar was proposed as the new Resolution Professional to replace the current IRP, Shri Vakati Balasubramaniam Reddy. The CoC's decision was backed by 100% voting share as the Punjab National Bank was the sole Financial Creditor present, giving it the authority to make the replacement decision.

The Tribunal reviewed the application, the relevant provisions of Section 22 of the Code, and the supporting documents provided by the applicant. After hearing both parties and examining the records, the Tribunal approved the appointment of Shri Purshotam Gaggar as the new Resolution Professional for the Corporate Debtor, replacing the existing IRP with immediate effect. The outgoing IRP was directed to hand over all necessary documents within two days from the date of the order. The new RP was instructed to carry out all functions as prescribed under various sections of the Code diligently and honestly to ensure the timely completion of the CIRP.

Regarding the payment of fees, the CoC was directed to settle the dues of the outgoing IRP and CIRP costs in accordance with the provisions of the Code and a specific judgment of the Honorable Supreme Court. The Tribunal admitted and disposed of the present application with the provided directions, thereby finalizing the process of replacing the IRP with the new Resolution Professional for the ongoing CIRP of the company.

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