Case Note & Summary
The appeal was filed against an order of liquidation concerning Jeppiaar Cements Pvt. Ltd. The Tribunal had previously set aside the liquidation order and restored the Corporate Insolvency Resolution Process (CIRP), directing the resolution professional to consider the Section 12A route. The appellant, Babu Manoharan Jaikumar Christhurajan, sought clarification regarding the reconstitution of the Committee of Creditors (CoC), claiming that the original financial creditors had been paid off, leaving only an operational creditor. The appellant contended that the resolution professional had improperly reconstituted the CoC by removing original members and adding new ones. The Tribunal heard the arguments and noted that the resolution professional must follow the legal procedures for CoC reconstitution, which had not been adhered to in this case. The Tribunal advised the resolution professional to follow the established practice and directed the appellant to approach the Adjudicating Authority for further action. The interim application was disposed of accordingly.
Headnote
A) Insolvency Law - Liquidation Order - Appeal Against Liquidation - Corporate Insolvency Resolution Process Restoration - The Tribunal set aside the liquidation order and restored the CIRP, directing the resolution professional to explore the Section 12A route for resolution. The appellant sought clarification regarding the reconstitution of the CoC, asserting that the original financial creditors had been paid off and new members were improperly added. The Tribunal advised adherence to the proper procedures for CoC reconstitution and directed the appellant to approach the Adjudicating Authority for further resolution (Paras 2-6).
Issue of Consideration
Whether the resolution professional followed the proper procedure in reconstituting the Committee of Creditors (CoC) after the restoration of the Corporate Insolvency Resolution Process (CIRP).
Final Decision
The Tribunal set aside the liquidation order and restored the Corporate Insolvency Resolution Process, directing the resolution professional to follow proper procedures for reconstituting the Committee of Creditors and advised the appellant to approach the Adjudicating Authority for further action.
Law Points
- Liquidation
- Corporate Insolvency Resolution Process
- Committee of Creditors
- Reconstitution of CoC
- Adjudicating Authority Procedures
