Case Law Details
Anil Kumar Ojha Vs Chandramouli Ramasubramaniam Resolution Professional of SLO Industrial Ltd. & Anr. (NCLAT, Chennai)
Section 27 of I & B Code specifies that a ‘Resolution Professional’ may be replaced/displaced at any time during ‘CIRP’ by the ‘Committee of Creditors’, by a 66% majority of voting shares, subject to a written consent of the proposed ‘Resolution Professional’. The ‘desires’ of majority of ‘Creditors’ is to be given weight. Undoubtedly, the ‘Committee of Creditors’ do have the right to displace a ‘Resolution Professional’. Section 27 of the Code, similar to that of Section 22 of the Code, provides for ‘Creditors’ involvement in the replacement of the ‘Resolution Professional’.
An ‘Adjudicating Authority’ is perforced to consider the name of ‘Resolution Professional’ proposed by the ‘Committee of Creditors’, in the event of the ‘Committee of Creditors’ is replacing the ‘Resolution Professional’. It is to be remembered that if no name is proposed by the ‘Committee of Creditors’ an ‘Adjudicating Authority’ is to call for a person’s name from ‘Insolvency and Bankruptcy Board of India’.
At this juncture, this connection, this ‘Tribunal’ on going through the ‘impugned order’ dated 23.12.2021 in IA(IBC)/1095/CHE/2021 in CP 1264/IB/2018 on the file of the ‘Adjudicating Authority’ (National Company Law Tribunal, Special Bench -1, Chennai) is of the considered opinion that the ‘Committee of Creditors’ is entitled and also empowered to change the ‘Resolution Professional’ in ‘Corporate Insolvency Resolution Process’ and that too, with a Majority of 66 % votes. In reality, the ‘Suspended Board of Director’ under the I & B Code, 2016 is not enjoined with the ‘power’ to displace the existing ‘Resolution Professional’ and to seek for a replacement of another ‘Resolution Professional’, being appointed in his place. Added further, an ‘Adjudicating Authority’ is to adhere to the procedural formalities which are mentioned in the relevant Sections of the Code, depending on the controversies involved, in the subject matter.
FULL TEXT OF THE NCLT CHENNAI ORDER
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