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Judgment
Per: Rajeswara Rao Vittanala, Member (J)
I.A No.562 of 2019 in C.P.(IB)No.137/BB/2019 is filed by Canara Bank represented by its Manager and PA Holder, Shri S. Meeyappan (hereinafter referred to as ‘Applicant’) U/s 22(3)(b) of the IBC, 2016, R/w Rule 11 of the NCLT Rules 2016, by inter alia, seeking to replace Shri Rajendra Prasad Tak, Interim Resolution Professional and appoint Shri Giridhari Lal Sharma, bearing Registration No.IBBI/IPA-001/IP-P00391/2017-18/10709 as Resolution Professional in the captioned proceedings and allow this Application to meet the ends of justice and equity.
Brief facts of the case, as mentioned in the application, are as follows:
The main Company petition filed by M/s.India Renewable Energy Development Limited, a Financial Creditor, under Section 7 of the IBC, 2016 R/w Rule 4 of the I&B (AAA) Rules, 2016 was admitted by this Adjudicating Authority vide order dated August 26th, 2019 ('Admission Order') by initiating CIRP, appointing Shri Rajendra Prasad Tak (IBBI Registration No.IBBI/IPA-001/IP-P00526/2017- 2018/10951 as appointed as the IRP, moratorium etc.
It is stated that the Applicant is a Financial Creditor of the Respondent Company and is a part of the Committee of Creditors with a voting share of 66%. Further, the Applicant being the being the Financial Creditor/member of the CoC is duly authorized to file this Application. During the 2nd CoC meeting was held on 18.10.2019, and CoC had decided to replace existing Shri Rajendra Prasad Tak and to appoint Shri Giridhari Lal Sharma, bearing Registration No.IBBI/IPA-001/IP-P00391/2017-2018/10709 as a Resolution Professional in the captioned matter. Accordingly, he has given his consent to act as a Resolution Professional vide FORM AA dated 18.10.2019 by inter alia declaring that he is qualified Resolution Professional, not suffering any disqualification etc.
Heard Shri Hemanth R. Rao, learned Counsel for the Applicant and Shri Shishira, learned Counsel for existing Interim Resolution Professional. We have carefully perused the pleadings of the parties and also extant provisions of the Code and the rules made thereunder.
The instant Application is filed in accordance with law and Resolution to replace the existing IRP with Resolution Professional is approved by sole COC member. Therefore, we are convinced with reasons cited by the Applicant for replacing existing IRP with that of new Resolution Professional. We are also of prima facie view that the proposed RP is duly qualified to be appointed as IRP and not suffering any disqualification as per written consent to act as RP for the Corporate Debtor. And the Resolution to appoint him is also approved with requisite majority as per Code. Hence, we are inclined to allow the application as prayed for.
In the result, by exercising powers conferred under the provisions of Section 22 of the IBC 2016, R/w Rule 11 of the NCLT Rules, 2016, I.A. No.562 of 2019 in C.P.(IB)No.137/BB/2019 is allowed with the following directions:
i. We hereby appointed Shri Giridhari Lal Sharma having Registration No.IBBI/IPA-001/IP-P00391/2017-18/10709 to act as the Resolution Professional in respect of the Corporate Debtor by replacing the existing Interim Resolution Professional Shri Rajendra Prasad Tak. ii. The Resolution Professional is directed to conduct the Corporate Insolvency Resolution Process (CIRP) expeditiously, in accordance with law, and promptly file his reports in the Registry of Tribunal. iii. The existing IRP is directed to handover all the records to the new Resolution Professional. iv. Post the case for report of IRP on 18.12.2019.