Byju Raveendran Vs Aditya Birla Finance Ltd (NCLAT Chennai)
NCLAT Chennai held that as per the Insolvency and Bankruptcy Code [IBC] there is no provision to ‘provisionally’ constitute the Committee of Creditors [CoC]. Thus, CoC once constituted is final and cannot be revised by IRP.
Facts- This appeal is filed by Byju Raveendran, suspended director and promoter of M/s Think and Learn Pvt. Ltd. under Section 61 of the Insolvency and Bankruptcy Code, 2016 to assail the validity of the order passed by the NCLT, Bengaluru Bench dated 29.01.2025. The Tribunal framed two issues, namely, (i) whether the IRP has the power to reconstitute the CoC, without the leave of the Adjudicating Authority? and (ii) whether the Respondent No. 2 has exceeded his authority conferred under law?
Read SC Judgment in this case: SC Dismisses Byju Raveendran’s Appeal, Allows IRP Enquiry to Proceed Expeditiously
Conclusion- Held that the argument of the Appellant about the provisional constitution of the CoC cannot be accepted because there is no provision in the Code. Thus, Tribunal rightly held in the impugned order that as per the IBC there is no provision to ‘provisionally’ constitute the CoC, the CoC once constituted is final and cannot be revised by the IRP/RP without the interference of the Adjudication Authority.
