2020 (2) TMI 1540 - Tri - Insolvency and Bankruptcy

Seeking for appointment of a Resolution Professional in place of the IRP - Section 22(2) (3)(b) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - Under sub section (4) of Section 9 of the Code, the Adjudicating Authority has to forward the name of Resolution Professional proposed under clause (b) of sub section (3) to the Insolvency and Bankruptcy Board of India for its confirmation and shall make such appointment after the confirmation of Board - in case, there is nothing against the person proposed, the Adjudicating Authority may appoint such person instead of seeking the confirmation from the IBBI. The Law Research Associate attached to this Tribunal has taken the print out from the database of Insolvency and Bankruptcy of India and the present status in respect of Mr. Kuldip Kumar Bassi, IP is that there is nothing adverse on record. Application allowed.

Summary

Issues: Appointment of Resolution Professional

Analysis:
The Punjab National Bank, as a Committee of Creditors (COC) member, filed an application seeking the appointment of a Resolution Professional (RP) in place of the existing Interim Resolution Professional (IRP) for M/s Lakshmi Energy and Foods Limited under Section 22(2) & (3)(b) of the Insolvency and Bankruptcy Code, 2016. The COC members failed to reach an agreement on the continuation of the IRP as RP, and the IRP expressed his inability to continue in the role. Consequently, in a meeting held on 30.01.2020, the COC resolved with a 93.58% voting percentage to appoint Mr. Kuldip Kumar Bassi as the RP.

Legal Provisions:
Under sub-section (4) of Section 9 of the Code, the Adjudicating Authority is required to forward the proposed RP's name to the Insolvency and Bankruptcy Board of India for confirmation. However, if there are no adverse records against the proposed RP, the Adjudicating Authority may appoint the RP without seeking confirmation from the IBBI. The Law Research Associate confirmed that there were no adverse records against Mr. Kuldip Kumar Bassi, the proposed RP, based on the database of Insolvency and Bankruptcy of India.

Judgment:
Considering the circumstances and the absence of adverse records, the Tribunal allowed the application and appointed Mr. Kuldip Kumar Bassi as the RP, replacing Mr. Ravinder Agarwal, the IRP. The Tribunal directed Mr. Agarwal to hand over all records and assets to Mr. Bassi promptly. Mr. Bassi was instructed to take charge of the records and assets and fulfill his duties as per the Code and Regulations. Additionally, Mr. Bassi was mandated to submit regular progress reports to the Tribunal every fortnight. Consequently, the Tribunal disposed of the application, and a copy of the order was directed to be supplied to the relevant parties.