Only CoC is empowered to change RP during a CIRP: NCLAT

  • Blog|News|Insolvency and Bankruptcy Code|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 16 July, 2022

Recent Posts

Blog, News, Income Tax

No TDS on Payments to Credit Guarantee Fund Trust for MSEs Referred in Section 10(46B) | CBDT

Blog

Assessee to Pursue Pending Proceedings Before Appellate Authority Instead of Filing Writ Petition | HC

Latest from Taxmann

Committee of Creditors; CoC

Case Details: Anil Kumar Ojha v. Chandramouli Ramasubramaniam Resolution Professional of SLO Industrial Ltd. - [2022] 140 taxmann.com 107 (NCLAT-Chennai)

Judiciary and Counsel Details

    • M. Venugopal, Judicial Member & Kanthi Narahari, Technical Member
    • Ms C. Jayachithra, Adv. for the Appellant.

Facts of the Case

In the instant case, the appellant was suspended board of directors of the corporate debtor. The appellant preferred an application to replace the Resolution Professional. The NCLT by an impugned order dismissed said application holding that no right had been conferred under provisions of IBC upon suspended board of director to replace Resolution Professional.

The appellant contended that it had every locus standi to prefer said application before the NCLT.

NCLAT Held

It was held that it was only Committee of Creditors which was entitled and empowered to change Resolution Professional in CIRP and that too with a majority of 66 per cent votes and suspended board of director under IBC was not enjoined with power to displace exisiting Resolution Professional and to seek for a replacement of another Resolution Professional being appointed in his place, thus, appeal filed was to be dismissed.

List of Cases Reviewed

    • Order of NCLT-Chennai in IA(IBC)/1095/CHE/2021 in CP 1264/IB/2018, dated 23-12-2021 (para 11) affirmed.

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied