2020 (1) TMI 1325 - Tri - Insolvency and Bankruptcy

Appointment of insolvency professional (IP) - HELD THAT - Section 16(3)(a) of the Insolvency and Bankruptcy Code, 2016 (Code) requires the Adjudicating Authority (AA) to make a reference to the Insolvency and Bankruptcy Board of India (Board) for recommendation of an insolvency professional (IP) who may act as an interim resolution professional (IRP) in case an operational creditor has made an application for corporate insolvency resolution process (CIRP) and has not proposed an IRP. The Board, within ten days the receipt of the reference form the AA is required under section 16(4) of the Code to recommend the name of an IP to the AA against whom no disciplinary proceedings are pending. This Bench recommend to the IBBI the name of Shri Rajendran P.R., Insolvency Professional to appoint him as Resolution Professional in IBA/49/KOB/2019 - Application disposed off.

Summary

Issues Involved:
1. Appointment of Resolution Professional in a Corporate Insolvency Resolution Process.

Analysis:
The judgment pertains to the appointment of a Resolution Professional in a Corporate Insolvency Resolution Process initiated against a specific Corporate Debtor. The Interim Resolution Professional filed a Memo on 28th January 2020 seeking the replacement of the existing IRP with a new Resolution Professional. The CoC, with 84.49% voting, resolved to appoint Mr. Rajendran P.R. as the Resolution Professional. The Tribunal reviewed the case records, including the CoC meeting resolution and submissions by the Interim Resolution Professional. Section 16(3)(a) of the Insolvency and Bankruptcy Code, 2016 mandates the Adjudicating Authority to refer to the Insolvency and Bankruptcy Board of India for recommending an Insolvency Professional to act as an IRP in case an operational creditor has not proposed one. The Board is required to recommend an IP to the AA within ten days, ensuring no pending disciplinary proceedings against the recommended professional. In this case, the Tribunal recommended Shri Rajendran P.R., an Insolvency Professional, for appointment as the Resolution Professional, providing his registration details and office address for the IBBI's consideration.

This judgment highlights the procedural requirements and legal provisions governing the appointment of Resolution Professionals in Corporate Insolvency Resolution Processes. It emphasizes the role of the Adjudicating Authority in referring to the IBBI for recommending a suitable professional, ensuring compliance with the Insolvency and Bankruptcy Code, 2016. The decision underscores the importance of CoC resolutions and the Tribunal's review of case records in determining the appointment of a Resolution Professional. The judgment serves as a significant precedent in ensuring the proper administration of insolvency proceedings and upholding the integrity of the resolution process by adhering to statutory guidelines and regulatory recommendations.