TaxTMI 
TaxTMI 
2020 (8) TMI 112
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.... Ms. Areela Sanjay Massey, Ms. Adya Shree Dutta, Mr. D.N. Sharma and Mr. T.R.B. Shivakar, Advocates. JUDGEMENT Appellant- 'State Bank of India' is the 'Financial Creditor' who sought initiation of 'Corporate insolvency Resolution Process' by filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "I&B Code") before the Adjudicating Authority (National Company Law Tribunal), New Delhi, Principal Bench which, on taking note of the objection raised by the 'Corporate Debtor'- 'M/s. Metenere Limited' regarding the name of proposed 'Interim Resolution Professional'- Mr. Shailesh Verma passed impugned order dated 4th January, 2020 directing the Appellant- 'Financial Creditor' to perform....
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....n only with the approval of the 'Committee of Creditors'. It is further submitted that the 'Financial Creditor' also plays part only to the extent of its voting share as a member of 'Committee of Creditors' and not beyond that. Therefore, merely because the proposed 'Interim Resolution Professional' happens to be an ex-employee of the 'Financial Creditor' cannot be a ground to allege bias against him. Lastly, it is contended that the proposed 'Interim Resolution Professional' is not on any panel of the Appellant Bank or handling any portfolios and has no role in decision making committee of the Appellant Bank. 3. Per contra, it is submitted on behalf of the Respondent-'Corporate Debtor' that Mr. Shailesh Verma was in employment with the Ap....
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....hailesh Verma is drawing pension from 'Financial Creditor's organisation does not clothe him with the status of an employee on the payroll of 'Financial Creditor'. Pension is paid for the services rendered to the employer in the past and it is a benefit earned for such past services under the relevant Service Rules. The pensioner is entitled to such benefit as a privilege under the Service Rules and not as a boon from the ex-employer. It is significant to refer to Regulation 3 (1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, which reads as under: "(1) An insolvency professional shall be eligible to be appointed as a resolution professional for a corporate insolven....
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....eligibility or disqualification for appointment as 'Interim Resolution Professional' or 'Resolution Professional'. Taking note of the relevant provisions of law in "State Bank of India v. Ram Dev International Ltd. (Through Resolution Professional)− Company Appeal (AT) (Insolvency) No. 302 of 2018" decided on 16th July, 2018, this Appellate Tribunal observed that merely because a 'Resolution Professional' is empanelled as an Advocate or Company Secretary or Chartered Accountant with the 'Financial Creditor' cannot be a ground to reject the proposal of his appointment unless there is any disciplinary proceeding pending against him or it is shown that the person is an interested person being an employee or on the payroll of the 'Financi....
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.... reasonableness of the apprehension in that regard in the mind of the party. The proper approach for the judge is not to look at his own mind and ask himself, however, honestly, "Am I Biased?"; but to look at the mind of the party before him" 8. The fact that the proposed 'Resolution Professional' Mr. Shailesh Verma had a long association of around four decades with the 'Financial Creditor' serving under it and currently drawing pension coupled with the fact that the 'Interim Resolution Professional' is supposed to collate all the claims submitted by Creditors, though not empowered to determine the claims besides other duties as embedded in Section 18 of the 'I&B Code' raised an apprehension in the mind of Respondent- 'Corporate Debt....