TaxTMI 
TaxTMI 
2019 (9) TMI 1406
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....sociates, Chandra Bhan Singh, Member (Technical) ORDER 1. The present Application is filed by State Bank of India on behalf of Committee of Creditors of Videocon for the replacement of Mr. Mahendra Khandelwal with Mr. Abhijit Guhathakurta having IBBI Registration No. IBBI/IPA-003/IP/N000103/201718/11158. Mr. Mahendra Khandelwal had been appointed as IRP/RP for the 'Consolidated Corporate Debtors' pursuant to the Order dated 08.08.2019 passed by this Bench in MA-1306/2019. 2. Earlier, an MA-1306/2019 was filed by State Bank of India on behalf of 15 Companies belonging to Videocon Group for consolidation of CIRP of the said companies. Out of the 15 Companies, the CIRP of only 13 Companies (hereinafter referred to as "Cons....
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....019 & NAGAR ZILLA MAJDOOR SENA & ORS. IN MA 3008 OF 2019 -OPPOSING THIS APPLICATION 5. During the course of hearing the Counsel for the present RP Mr. Khandelwal who is proposed to be replaced by the new RP Mr. Abhijit Guhathakurta as well as the Learned Counsel Mr. Pradeep Sancheti appearing for the Operational Creditor VIL Vendors Association, Aurangabad, argued against the change of RP. The opposition Learned Senior Counsels Mr. Pradeep Sancheti and Mr. S.V. Kamdar argued largely on 4 counts:- (a) That Mr. Khandelwal has been appointed by the Bench and not under Sections 22 or 27 of the I&B Code and therefore, it is not within the powers of COC to recommend the change. The change, if at all, can be made at only by the Bench b....
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....oyee of Deloitte. Therefore, they argued that because of the earlier association of the proposed RP with the SBI, a situation of 'Conflict of Interest' would arise. The Learned Counsels further stated that the copies of MA Nos. 3173/2019 was not given to them regarding change of RP pursuant to the decision of COC. SUBMISSIONS MADE BY SBI ON BEHALF OF COC 6. The Learned Senior Counsel Mr. Ravi Kadam appearing on behalf of State Bank of India drew the attention of this Bench to the fact that Insolvency is a Creditors Driven Process and therefore, it would be fallacious to come to the conclusion that the COC does not have power to change the RP. The Ld. Counsel mentioned that as per section 22(3)(b) of the I&B Code, the CoC can replace t....
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....uld adversely impact his career as RP and may lead to inquiry and further action by IBBI which would not be in the interest of the RP. The Learned Counsel appearing on behalf the Applicant drew the attention in this regard to the Order dated 16.07.2018 passed by the Hon'ble NCLAT in State Bank of India V/s Ram Dev International Limited {Company Appeal (AT) (Insolvency) No. 302 of 2018}. It was held that: "14. Though such submission seems to be attractive, we are of the view, it is not desirable for a Committee of Creditors to record its opinion in view of the following reasons: (i) If the Committee of Creditors record any adverse opinion for replacement of Resolution Professional, it will not only harm him for the present ....
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....with the Code of conduct prescribed in IBBI (Insolvency Professionals) Regulations, 2016, for RP. FINDINGS 10. On going through the submissions made by the Senior Counsels of all the sides this Bench is of the view that the power of CoC, to replace the IRP with RP in the first CoC meeting as prescribed under section 22 of the I&B Code or the power to replace the RP at any time during the CIRP proceedings as prescribed under section 27 of the I&B Code, cannot be interfered with. In light of the decision of Hon'ble NCLAT in the above said order (supra), the CoC even need not give the reasons for the replacement of IRP/RP. 11. In the insolvency resolution mechanism, the RP acts as a bridge between the CoC and the prospective investors....