Only CoC is empowered to change RP during a CIRP: NCLAT
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- Last Updated on 16 July, 2022
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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
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- 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
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- 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
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- Arcelormittal India (P.) Ltd. v. Satish Kumar Gupta [2018] 98 taxmann.com 99/150 SCL 354 (SC) (para 7).
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