TaxTMI 
TaxTMI 
2021 (11) TMI 839
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....ER VIRENDRA KUMAR GUPTA (TECHNICAL MEMBER).- 1. Through I. A. No. 424 of 2021, committee of creditors is seeking replacement of IRP. 2. The facts, in brief are that the corporate debtor was admitted into CIRP vide order of this Authority dated April 6, 2021. IP was appointed as IRP. Now, in the first meeting of CoC held on May 10, 2021 the committee of creditors resolved to appoint Mr. Shailendra Ajmera as resolution professional with a majority voting share of 90.71 per cent. Thereafter, the applicant was authorized with 99.94 per cent. to file this application. 3. It is also claimed that proposed resolution professional has given his consent and no proceedings are pending against such person. However, suspended management of t....
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....also been made as regard to buyers and unprofessional conduct of existing IRP. The applicant has also relied on the decision of the hon'ble National Company Law Appellate Tribunal in the case of Naveen Kumar Jain v. Committee of Creditors of K. D. K. Enterprises P. Ltd., for the proposition that replacement of RP is an exercise of commercial wisdom by the CoC which cannot be interfered. For the same proposition reliance had also been placed on the decision of the hon'ble National Company Law Appellate Tribunal in the case of Bank of India v. Nithin Nutritions P. Ltd. [2020] 118 taxmann.com 343 (NCLAT), wherein it is held that there is no doubt that the CoC has the requisite powers to propose change of the interim resolution professi....
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....170 days and has been able to attract 16 expressions of interest from well- respected ARC/corporates of the country. It is also claimed that affairs of the corporate debtor as a going concern are managed in the best possible manner and statistics prove this fact. As regard to aspect of competence and independence of the existing IRP, it has been claimed that no communication has been made to him to show his competence to handle CIRP of the corporate debtors having large assets base. As regard to appointment of professionals and other key management personnel of the corporate debtor it has been claimed that right people need not to be replaced or thrown out only for the reason they were working with the corporate debtor before initiation of ....
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....elated party and thus, not entitled to take up the assignment of RP qua the corporate debtor. It has also been claimed that said IP should not have given his consent to act as RP in violation of the code of conduct which such proposed RP is required to follow. 8. Learned counsel for the applicant in I. A. No. 424 of 2021 submitted that the suspended management has got no locus and therefore, this IA is not maintainable and thus, liable reliable to be rejected out rightly. On merit, reliance has been placed on the decision of the hon'ble Supreme Court in the case of State Bank of India v. Metenere Ltd. as reported in [2020] 11 Comp Cas-OL 15 (SC) ; [2020] 162 SCL 504 (SC) wherein, the hon'ble Supreme Court held that the insolvency....
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....ess between the two pillars of CIRP. It is also noted that in the present case IRP was proposed by the original financial creditor, i. e., Invesco Asset Management (India) P. Ltd., which is a large financial institution who had filed application under section 7, hence, prima facie professional competency, capacity and neutral approach of such IRP cannot be doubted. As noted earlier, CIRP period timeline of 180 days is also approaching. In these circumstances, in our view it would be advisable that the CoC should reconsider its decision as change of IRP in between would result into delay in process. One of the objects of the IBC, 2016 is to complete CIRP in the time bound manner which would get defeated. Thus, we hold that the CoC should rec....