Case Note & Summary
The dispute arose from the constitution of the Committee of Creditors (CoC) in a corporate insolvency resolution process (CIRP) initiated against a corporate debtor. The Appellant, Ashok Tiwari, challenged the CoC's constitution, claiming it was formed without considering relevant facts, and filed an application (I.A. No. 4742 of 2024) before the Learned Adjudicating Authority, which remained pending. The Appellant contended that the CoC's decision to replace the Resolution Professional (RP) Ms. Ritu Rastogi with Mr. Mukesh Kumar Grover was premature and intended to render the pending application infructuous. The Respondents did not dispute the existence of an interim order initially passed on 28.05.2025 and modified on 21.07.2025, allowing the new RP to proceed with the resolution process but requiring leave from the Appellate Tribunal before issuing form G. The court acknowledged the pending I.A. and expressed that the Appellant's grievances would be addressed upon its disposal. The court requested the Learned Adjudicating Authority to expedite the I.A. and extended the interim order, allowing the RP to proceed with the resolution process while mandating that leave be obtained before issuing form G. The appeal was disposed of without costs, and any pending interim applications were closed.
Headnote
A) Insolvency Law - Constitution of Committee of Creditors - Validity of CoC Constitution - Insolvency and Bankruptcy Code, 2016, Section Not mentioned - The Appellant challenged the constitution of the CoC by filing an I.A. No. 4742 of 2024, which is still pending before the Learned Adjudicating Authority. The court directed that the I.A. should be disposed of at the earliest and extended the interim order allowing the newly appointed RP to proceed, subject to obtaining leave before issuing form G. Held that the grievance of the Appellant would be readdressed upon the disposal of the I.A. (Paras 3-4).
Issue of Consideration
Whether the constitution of the Committee of Creditors (CoC) was valid and if the interim order regarding the Resolution Professional (RP) should continue pending the decision on the application before the Adjudicating Authority.
Final Decision
The appeal was disposed of with a request to the Learned Adjudicating Authority to expedite the disposal of I.A. No. 4742 of 2024 within three months. The interim order was extended, allowing the newly appointed RP to proceed, subject to obtaining leave before issuing form G.
Law Points
- Constitution of Committee of Creditors
- Interim Orders
- Resolution Process
- Insolvency and Bankruptcy Code
- 2016
