Substitution of interim resolution professional allowed where prior appointee withdrew consent and new insolvency professional met compliance requirements.

In a corporate insolvency resolution process, the NCLT allowed substitution of the interim resolution professional after the earlier proposed professional withdrew consent and the previously appointed IRP was unavailable. The Tribunal treated the request as maintainable under Rule 11 of the NCLT Rules and noted that the newly selected insolvency professional showed no adverse material and was required to comply with the prescribed code of conduct before consenting. It appointed the new IRP and issued consequential directions on filing consent, public announcement, management of the corporate debtor, constitution of the committee of creditors, and reporting obligations.

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Issues: Whether the application seeking amendment of the earlier order and substitution of the interim resolution professional could be allowed, and whether a new interim resolution professional could be appointed in place of the earlier appointee.

Analysis: The application was moved under Rule 11 of the National Company Law Tribunal Rules, 2016 in the context of the corporate insolvency resolution process. The earlier proposed professional had withdrawn consent and the previously appointed interim resolution professional was no longer available. The Tribunal also noted the need for the proposed professional to comply with the prescribed code of conduct before giving consent. Since the record showed no adverse material against the newly selected insolvency professional, the Tribunal proceeded to appoint him as interim resolution professional and issued consequential directions regarding filing of consent, public announcement, management of the corporate debtor, constitution of the committee of creditors, and reporting obligations.

Conclusion: The application for substitution of the interim resolution professional was allowed, and Mr. Anil Arora was appointed as the interim resolution professional in place of Mr. Manish Aggarwal.

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