Case Note & Summary
The case involved applications for the replacement of the Interim Resolution Professional (IRP) in the corporate insolvency resolution process concerning Atma Ram House Investment Pvt. Ltd. The appellant, Devi Singh, a suspended director of the company, filed the applications citing that the IRP, Sh. Santanu T. Ray, was handling more than 10 cases, which disqualified him from being appointed as IRP. The Tribunal noted that the Committee of Creditors (CoC) had not yet been formed and referred to previous orders indicating that the debt's classification as financial or not was still under examination. The Tribunal acknowledged that the applications had not been moved before the National Company Law Tribunal (NCLT) and thus disposed of them, granting liberty to the applicant to file appropriate applications before the NCLT for the replacement of the IRP. The Tribunal requested that the NCLT dispose of any such application preferably within two weeks. The counsel for the Resolution Professional (RP) pointed out that such applications should have been filed before the NCLT. The decision emphasized the need for procedural compliance in insolvency matters.
Headnote
A) Corporate Insolvency - Replacement of Interim Resolution Professional - Grounds for Replacement - Insolvency and Bankruptcy Code, 2016, Section Not mentioned - Applications were filed for the replacement of the IRP on the grounds of having more than 10 cases, which legally disqualified him from serving as IRP. The Tribunal disposed of the applications, allowing the applicant to move the NCLT for replacement and requested prompt disposal of such application. Held that the matter should be addressed by the NCLT (Paras 1-2).
Issue of Consideration
Whether the Interim Resolution Professional (IRP) should be replaced due to having multiple cases assigned.
Final Decision
The Tribunal disposed of the applications for replacement of the IRP, allowing the applicant to file a new application before the NCLT and requested prompt disposal of such application.
Law Points
- Corporate Insolvency Resolution Process
- replacement of Interim Resolution Professional
- Committee of Creditors formation
- application before NCLT
