2024 (4) TMI 1397

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....dated 11.03.2024, as it has been rendered by the Learned Adjudicating Authority while deciding IA/IBC/626/2024 which was filed in CP No. IB/260/2021, whereby the Appellant has been removed to function further as an IRP, as a consequent to the Impugned Order the newly impleaded Respondent Mr. Hari Karthik has been appointed as IRP with immediate effect. The facts involved in the present Appeal are that the Appellant contends that he is a Resolution Professional, a Member of ICSI (Institute of Insolvency Professionals), (ICSI-IIP) and is an Insolvency Professional (IP) accordingly he has got registered with the IBBI, holding Registration No. IBBI/IPA-002/IP- N0009/2016-2017/10013. M/s. Thirupur Suriya Textiles Pvt. Ltd. was put to Liqui....

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.... a Show Cause Notice was issued against him on 29th November 2022, on the basis and on consideration of the Reply submitted by the Appellant. Ultimately, it was found that in the Proceedings which were held by way of MA/576A/2018 which was filed by the Liquidator of the Corporate Debtor under Section 60(5) Section 68 and 74 of the Code, it was disposed of by the Adjudicating Authority vide its order dated 27th April 2021. The Suspended Directors of the Corporate Debtor, and later on the Bank of India were supposed to contribute to the assets of the Corporate Debtor but it was found that a sum of Rs.79,65,090/-was withdrawn by the IRP i.e. the Appellant during the Moratorium period as contemplated under Section 14 of the I & B Code. The A....

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....sequent to which while exercising its power under Section 220(2) of the Code, to be read with Regulation 13 of IBBI Regulation 2017 the Appellant registration was suspended for a period of one year. It is admitted by the Appellant that there is nothing contrary to the above records and that the said Order of Suspension as passed by the IBBI on 12th April 2023, has attained finality, as it has not been put to challenge. The interpretation which has been drawn by the Appellant by putting a challenge to the Impugned Order, where he has been removed to function as an IRP of Corporate Debtor, it was an order of only calling upon the Appellant to explain as to why the Proceedings of IBBI was not brought by him to the Notice of the Tribunal.....

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....P was passed on 12th April 2023, he will lack an authority to still to function as an IRP even in the pending Proceedings or any Proceeding which is to be carried henceforth, since having held to be ineligible to function as such, his incapacity, would be his incapacity right from the date he was registered by IBBI. The argument extended by the Appellant of not being Heard prior to passing of the order is not acceptable by this Tribunal, for the reason being that the legal corollary of passing of the Order dated 12th April 2023, which remain unchallenged, will have its automatic legal consequences of incapacitating the Appellant to function as an IRP, after his suspension on 12th April, 2023. Hence, no prejudice as such would be caused t....