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Judgment
ORDER
This Court is congregated through hybrid mode.
This application has been filed in CP (IB) No. 1074/KB/2019 by ICICI Bank (Hereinafter referred to as Applicant). This IA seeks the following reliefs:
An order of replacement of the incumbent Liquidator, and appointment of the proposed IP as Liquidator of the Corporate Debtor;
Ad interim orders in terms of prayer above;
Such further and/or other order or orders and/or direction or directions as your Honour may deem fit and proper.
The applicant states that by an order dated January 14, 2022 passed an application under section 7 of the said Code, CIRP was directed to commence in respect of the corporate debtor, and Mr. Kuldeep Verma was appointed as the IRP.
The applicant states that this Hon'ble Tribunal was pleased to pass an Order of Liquidation dated December 19, 2022 and the respondent herein acting as the Resolution Professional during the CIRP period, was appointed as the Liquidator in respect of the Corporate Debtor herein.
The applicant states that the applicant has come to learn by way of a letter received from the respondent himself dated 10.04.2025 that an order dated April 7, 2025 has been passed by the Disciplinary Committee of the Insolvency and Bankruptcy Board of India (for short, "IBBI") being No. NO. IBBI/DC/282/2025 by which a Show-Cause Notice dated March 26, 2024, issued against the respondent under Section 220 of IBBI (Inspection and Investigation) Regulations, 2017 and Regulation 11 of IBBI (Insolvency Professionals) Regulations, 2016, was disposed of with strictures passed against the respondent.
In the said Order, it was established beyond doubt that there has been several contraventions of the code and the regulations laid down on the part of the Liquidator while handling several CIRP processes which goes against the Code of Conduct which an insolvency professional is required to follow and adhere to. In view of such contravention, the Disciplinary Committee was also pleased to exercise of the powers conferred under Section 220(2) of the Code read with Regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017 and suspended the registration of Mr. Kuldeep Verma (Registration No. IBB1/1PA-001/1P00014/2016-2017/10038), the applicant herein for a period of two years. Vide the said letter dated 10.04.2025 the respondent informed all the members of the Stakeholder's Consultation Committee that on moral grounds he does not wish to continue in his role of Liquidator of the Corporate Debtor.
The applicant states that the members of the Stakeholder's Consultation Committee took note of the same in the 12th meeting of the stakeholder's Consultation Committee held on April 21,2025 and further resolved as follows-
Resolution No. 1: Proposal to replace the Liquidator
“RESOLVED THAT the members of Stakeholder Consultation Committee (SCC) of the Hindusthan Small Tools Private Limited proposes to replace Mr. Kuldeep Verna (IBB1/PA-001/1P-P00014/2016-17/10038), with Mr. Anup Kumar Singh(1BB1/1PA-001/1P-P00153/2017-2018/10322) as the Liquidator of Hindusthan Small Tools Private Limited as per Regulation 31A(11) of IBBI (Liquidation Process) Regulations, 2016 and other applicable provisions of IBC, 2016.
RESOLVED FRUTHER THAT, ICICI Bank Limited is hereby authorised on behalf of members of the Stakeholder Consultation Committee (SCC) to intimate by way of an appropriate application under IBC 2016, the decision of the SCC to propose the replacement of Liquidator to Hon'ble Adjudicating Authority."
Resolution No.2 : Fee of proposed New Liquidator
“RESOLVED THAT revised financial bid as submitted by Mr. Anup Kumar Singh (IBBI/IPA-001/1P-P00153/2017-2018/10322) be approved by SCC towards his fee/remuneration".
Resolution No. 3: Lumpsum fee for present liquidator till his replacement
“RESOLVED THAT. Mr. Kuldeep Verma, the present Liquidator be paid a lump-sum fees of Rs.5,00,000 plus GST towards duties performed by him till his replacement by the new liquidator. " The said resolutions were passed with a majority of 74.79% by the Stakeholder's Consultation Committee.
The applicant states that Anup Kumar Singh, Insolvency Professional having Registration No. IBB1/1PA-001/1P-P00153/2017-2018/10322 has submitted his written consent in Form — AA to act as Liquidator of the Corporate Debtor (now in liquidation) along with his Authorization for Assignment (for short, "AFA") as proposed by the applicant herein.
In such facts and circumstances, the present application has been moved by the stakeholder for replacement of present liquidator with the proposed Insolvency Professional as liquidator of the Corporate Debtor.
We find it is a fit case for appointment of new liquidator upon the Order dated 07.04.2025 issued by the disciplinary committee, suspending the registration of present liquidator Mr. Kuldeep Verma for a period of two years. We hereby appoint Mr. Anup Kumar Singh, Insolvency Professional, having Registration No. IBB1/1PA-001/1P-P00153/2017-2018/10322 subject to a valid Authorisation for Assignment (AFA) issued by the Insolvency Professional Agency (IPA) of which he is a professional member.
We hereby direct the erstwhile liquidator to handover all papers and documents in his possession concerning the Corporate Debtor to the New Liquidator appointed in this matter within 3 days.
Accordingly, the said IA 942/KB/2025 is disposed of.