2018 (7) TMI 1984 - Tri - Insolvency and Bankruptcy

Miscellaneous application including Appointment of Resolution Professional etc - HELD THAT - It is worth to mention few points that on appointment of Resolution Professional certain steps have been taken by him as prescribed under I B Code, such as Advertisement in the Newspaper, Constitution of Committee of Creditors and representation before NCLT Bench time to time, action against the Debtors of the Company, etc. For those efforts he is entitled for a reasonable Fees, as also accepted by the Learned Counsel of Committee of Creditors and Learned Counsel of Respondent No.2. As far as the question of submission of this Application beyond 270 days by Committee of Creditors, this hurdle can be removed by taking shelter of an Order of Hon'ble NCLAT. This Miscellaneous Application is disposed off.

Summary

Issues:
1. Replacement of resolution professional by the Committee of Creditors.
2. Handing over of documents and papers related to the case.
3. Inquiry into the conduct of the resolution professional and actions against him.
4. Approval of fees and expenses of the resolution professional.
5. Conduct of Committee of Creditors and resolution professional in the insolvency process.

Replacement of Resolution Professional:
The Committee of Creditors filed a Miscellaneous Application seeking the replacement of the current resolution professional, Mr. Sanjay Ruia, with Mr. Anurag Jain. The Committee alleged that Mr. Ruia's conduct was unfair and his fees were exorbitant. The Tribunal considered the circumstances and appointed a new resolution professional, Mr. Ajay Agrawal, to replace Mr. Ruia. The outgoing professional was directed to hand over all relevant documents and cooperate with the new professional.

Handover of Documents and Fees Approval:
The Tribunal ordered the outgoing resolution professional to hand over all case-related documents to the new professional. It also approved a reasonable fee structure for the outgoing professional, to be paid by the Committee of Creditors and the Corporate Debtor. The approved fees included various components such as interim resolution professional fees, legal costs, and appearance fees.

Inquiry into Conduct and Actions:
The Committee of Creditors sought an inquiry into the conduct of Mr. Ruia and requested the matter to be recommended to the Insolvency and Bankruptcy Board of India (IBBI). The Tribunal acknowledged the concerns raised by the Committee but also noted the efforts made by the resolution professional in following the Insolvency and Bankruptcy Code procedures. The Tribunal directed the outgoing professional to cooperate with the inquiry and the new professional.

Approval of Fees and Expenses:
The Tribunal approved the fees and expenses of the outgoing resolution professional, taking into account the various components and revised amounts. The total fees payable, including taxes, were finalized, and the outgoing professional was entitled to reimbursement for certain expenses incurred during the process.

Fast Track Corporate Insolvency Process:
Due to the delays in finalizing the insolvency process, the Tribunal decided to treat the case as a "Fast Track Corporate Insolvency Process" to be completed within 90 days from the date of the order. This decision was based on the exceptional circumstances of the case and the need for a swift resolution.

In conclusion, the Tribunal disposed of the Miscellaneous Application in accordance with the decisions outlined above, addressing the concerns raised by the Committee of Creditors and ensuring a smooth transition to a new resolution professional while expediting the insolvency process.