2020 (12) TMI 1132

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or the Respondent : Mr. Ashish Aggarwal and Mr. Gurcharan Singh, Advocates. ORDER (Through Virtual Mode) Order dated 14th December, 2020 passed by the Adjudicating Authority (National Company Law Tribunal), Allahabad Bench, adjourning the matter to 20th January, 2021 while granting an opportunity to the Interim Resolution Professional (IRP) to file an affidavit in regard to passing of resolution by the Committee of Creditors for its replacement by Resolution Professional (RP) under Section 22 of the I&B Code, has been assailed in this appeal on the ground that there was no occasion for the Adjudicating Authority to have granted time to Interim Resolution Professional to file any objection/ reply to the resolution of Committee of Cr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....wal was voted by CoC with more than 78% vote share. It is further submitted that the CoC had moved application under Section 22(3) of the I&B Code for appointment of Mr. Gangaram Agarwal as Resolution Professional in terms of the resolution passed by CoC with 78.28% of voting share. Therefore, it is submitted by Mr. Ramji Srinivasan, learned senior counsel representing the Appellant that harping upon application of Section 27 is devoid of reason. Reference is made to email dated 26th November, 2020 emanating from the IRP, which clearly demonstrates that the IRP was mislead into believing that Section 22 of I&B Code would apply only if IRP is replaced in first meeting of COC and not otherwise. This is clearly borne out by the email forming p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l in Company Appeal (AT) (Insolvency) No. 882 of 2020, "Naveen Kumar Jain vs. Committee of Creditor of K.D.K Enterprises Pvt. Ltd. & Ors." and Company Appeal (AT) (Insolvency) No. 749 of 2019, "Punjab National Bank vs. Mr. Kiran Shah, IRP of ORG Informatics Ltd.". In the instant case, it is not in controversy that in the first CoC Meeting appointment of IRP as RP failed to garner any support. Thereafter, the bid made by the IRP offering himself for appointment as RP also did not cut any ice with the CoC. Ultimately, IRP was replaced by Mr. Gangaram Agarwal in terms of resolution passed in second CoC Meeting with 78% vote share of the Committee of Creditors. It is indisputable that these actions are permissible only within the ambit of Secti....