2025 (4) TMI 114

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eard counsel for the Appellant as well as the Ld. Counsel for the Resolution Professional. 2. This appeal has been filed against the order dated 14.02.2025 by which order the application filed by the appellant IA No. 1795/2024 under Section 27 of the IBC for replacement of the RP has been rejected. Ld. Counsel for the Appellant submit that application for replacement was filed after conduct of the voting on 09.11.2024 where resolution was passed with 78.86% voteshare. The appellant itself has vote-shares of 68.18%. He submits that in view of the approval of the Committee of Creditors for replacement of the RP, Adjudicating Authority ought not to have rejected the application and the order passed is against the scheme of the IBC. 3. Ld....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f the judgment following were held:- "8. Learned counsel for the Respondent has rightly relied on three decisions of this Appellate Tribunal. Firstly, in "Company Appeal (AT) (Ins) No. 749 of 2019, Punjab National Bank vs. Kiran Shah, IRP of ORG Informatics Ltd." wherein this Tribunal held following:- "Having heard the learned counsel appearing on behalf of the Appellant and the learned counsel appearing on behalf of the 'Resolution Professional', we are of the view that the 'Committee of Creditors' is not required to record any reason or ground for replacing of the 'Resolution Professional', which may otherwise call for proceedings against such 'Resolution Professional'. For the purpose of proceedings reported to the 'Ins....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....From the decisions of this Tribunal, as noted above, it is clear that replacement of Resolution Professional is complete when required decision is taken by the CoC in its meeting with requisite majority. The submission of learned counsel for the Appellant that Section 27 does not exclude applicability of principles of natural justice does not commend us. When we look into the scheme of Section 27 it by implication exclude the principles of natural justice, it is clear from the scheme of Section 27 that the scheme nowhere provides for any opportunity to the Appellant for hearing. Therefore, it cannot be said that the erstwhile Resolution Professional is entitled to be heard by the Adjudicating Authority before taking decision. 11. A....