Committee Of Creditors Represented Through UCO Bank vs Digjam Limited

The Applicant is represented through learned counsel.

The Order is pronounced in the open court vide separate sheet.

[Per: Ms. Manorama Kumari, Member (Judicial)]

The instant IA is filed by the Committee of Creditors of Digjam Limited (hereinafter referred to as CD) represented through UCO Bank through its authorized officer, Shri Jitin Choudhary, for replacement of Interim Resolution Professional (hereinafter referred as "IRP") by the proposed Resolution Professional as Resolution Professional (hereinafter referred as "RP") under section 22 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred as "IB Code")

For the sake of brevity, it is stated hereunder that this Adjudicating Authority vide its order dated 26.04.2019 admitted the petition filed by an Operational Creditor viz. Oman Inc. (HUF) for the initiation of Corporate Insolvency Resolution Process against the Corporate Debtor and thereby appointed Mr. Parag Sheth, to act as an IRP.

It is further stated that IRP made the Public Announcement dated 06.05.2019 as contemplated under Section 15 of the Code and called for claims from all the creditors and subsequently upon receipt of claims till 20.05.2019 constituted the CoC.

The first meeting of CoC was duly convened by the IRP on 24.05.2019 and in the first meeting of CoC, the CoC unanimously resolved to replace the IRP by the proposed RP. The CoC suggested the name of Mr. Sunil Kumar Agarwal to appoint as a RP for the remaining period of CIRP of the Corporate Debtor. The written consent by the proposed RP in the prescribed Form AA is annexed with the IA as Annexure-E.

Before taking any final decision in the matter, this Adjudicating Authority thought it fit to provide an opportunity of hearing to the IRP. Accordingly, the IRP was called and this Adjudicating Authority, heard the IRP. The IRP also filed his written submissions. The IRP stated that sole reason for replacement of the IRP was the fact that he is not on the panel of UCO Bank (the Applicant) who happens to hold (83.32%) of the voting rights in the CoC and desire to put in place an Insolvency Professional who is on the panel of UCO Bank. The IRP through his written submissions refuted all the allegations made against the IRP and presented the facts and circumstances for his replacement. The same has been taken on record.

On perusal of the records, it is found that Resolution for replacement of the IRP Shri Parag Sheth with RP Shri Sunil Kumar Agarwal, was passed on 04.06.2019 by way of e-voting, wherein the CoC unanimously resolved to replace the IRP with that of Shri Sunil Kumar Agarwal. Accordingly, Mr. Sunil Kumar Agarwal, with IBBI with registration number IBBI/IPA-001/IP-01390/2018-19/12178 is appointed as RP for the purpose of Corporate Insolvency Resolution Process of Digjam Limited. This Adjudicating Authority directs the CoC of the Corporate Debtor to clear all the dues of the IRP till the date of his replacement, as per the provisions of the IB Code.

Registry is directed to confirm from the IBBI website with regard to having any disciplinary action in respect of proposed RP.