2020 (4) TMI 892 - Tri - Insolvency and Bankruptcy

Replacement of IRP with RP - seeking approval for replacing Mr Hemant Shah, Interim Resolution Professional (IRP), with Mr Saurabh Tikmani as Resolution Professional (RP) of the Corporate Debtor - sections 22(2) and 22(3)(b) of the Insolvency Bankruptcy Code, 2016 - HELD THAT - The first meeting of the CoC was held on 16.01.2020, at which it was resolved to appoint Mr Saurabh Tikmani (Reg. No.IBBI/IPA001/IP-P00559/2017-18/10989) as the RP of the Corporate Debtor in place of Mr Harshul Anilkant Shah, IRP. The voting result has been placed at p.47 of the Interlocutory Application. Mr Saurabh Tikmani has also filed his written consent in Form AA to act as RP of the Corporate Debtor, which has been placed on record at p.48 of the Application. There are no circumstances that inhibit the appointment of Mr Saurabh Tikmani as such RP. This Bench after duly considering the facts and circumstances mentioned in the interlocutory application and the submissions made by the learned counsel for the Applicant/ RP at the time of hearing held on 28.02.2020, hereby grants approval for the appointment of Mr Saurabh Tikmani Reg. No.IBBI/IPA-001/IPP00559/2017-18/10989 as the RP of Tribhovandas Bhimji Zaveri Sons Retail Private Limited CIN U74999MH2015PTC263038 , the Corporate Debtor. Application disposed off.

Summary

Issues:
- Replacement of Interim Resolution Professional (IRP) with Resolution Professional (RP) under sections 22(2) and 22(3)(b) of the Insolvency & Bankruptcy Code, 2016 (IBC).
- Challenge to the order of admission dated 16.12.2019 before the Hon'ble National Company Law Appellate Tribunal (NCLAT).
- Approval for the appointment of Mr. Saurabh Tikmani as RP of the Corporate Debtor.

Analysis:
1. The Interlocutory Application (IA) was filed by Axis Bank Limited, representing the Committee of Creditors (CoC) of the Corporate Debtor, seeking approval to replace Mr. Hemant Shah, the IRP, with Mr. Saurabh Tikmani as the RP under sections 22(2) and 22(3)(b) of the IBC. The Adjudicating Authority had earlier admitted the petition under section 9 of the IBC and initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, appointing Mr. Harshul Anilkant Shah as the IRP.

2. A challenge was made by Mr. Hemant Zaveri against the order of admission dated 16.12.2019 before the Hon'ble NCLAT. The NCLAT issued directions to ensure the company remains a going concern during the appeal process. The first meeting of the CoC resolved to appoint Mr. Saurabh Tikmani as the RP in place of Mr. Harshul Anilkant Shah, and Mr. Tikmani's appointment was approved by the Bench after considering the facts and submissions made by the parties.

3. The approval for the appointment of Mr. Saurabh Tikmani as the RP of the Corporate Debtor was granted by the Bench after the CoC's decision and the submission of Mr. Tikmani's written consent. The Bench found no inhibiting circumstances for Mr. Tikmani's appointment and disposed of the Interlocutory Application accordingly. The IA was filed in CP (IB) No.2979/2018 and was disposed of as per the approval granted for Mr. Tikmani's appointment as RP of the Corporate Debtor.