2018 (5) TMI 735 - Tri - Insolvency and Bankruptcy

Corporate insolvency process - Interim Resolution Professional appointment - Held that - This petition filed by the Operational-Creditor under Section 9 of the Insolvency and Bankruptcy Code, 2016( the Code ) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 ( the Rules ) for initiating the insolvency resolution process was admitted on 28.02.2018. The matter was fixed for today for passing of the formal order of appointment of Interim Resolution Professional, Ms. Mandeep Gujral, who has furnished communication in Form No.2, which was found to be in order as observed in the order dated 28.02.2018. The proposed Interim Resolution Professional is also present in person.

Summary

Issues involved:
1. Admission of petition under Section 9 of the Insolvency and Bankruptcy Code, 2016
2. Appointment of Interim Resolution Professional
3. Suspension of powers of the Board of Directors
4. Duties and responsibilities of the Interim Resolution Professional
5. Constitution of Committee of Creditors
6. Public announcement of initiation of Corporate Insolvency Resolution Process
7. Reporting obligations of the Interim Resolution Professional

1. Admission of petition under Section 9 of the Insolvency and Bankruptcy Code, 2016:
The petition filed by the 'Operational-Creditor' under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the insolvency resolution process was admitted on 28.02.2018. The matter was scheduled for the formal order of appointment of Interim Resolution Professional, Ms. Mandeep Gujral, who was found suitable for the role as observed in the previous order.

2. Appointment of Interim Resolution Professional:
The Tribunal appointed Ms. Mandeep Gujral as the Interim Resolution Professional for a specified term of 30 days or as determined by the committee of creditors, whichever is earlier. The Interim Resolution Professional was directed to take control of the management of the 'Corporate Debtor' as per the provisions of the Code, including preparing an inventory of the assets and acting in accordance with the Code and the Code of Conduct governing the profession.

3. Suspension of powers of the Board of Directors:
In accordance with Section 17 of the Code, the powers of the Board of Directors were suspended from the date of the Interim Resolution Professional's appointment. The management of the affairs of the 'Corporate Debtor' was vested with the Interim Resolution Professional, who was tasked with exercising all powers and duties as prescribed under the Code.

4. Duties and responsibilities of the Interim Resolution Professional:
The Interim Resolution Professional was directed to strictly adhere to the Code, relevant rules, and the Code of Conduct governing the profession. Additionally, the Professional was required to prepare a complete list of the 'Corporate Debtor's assets and file reports to the Tribunal every seventh day regarding the 'Corporate Debtor'.

5. Constitution of Committee of Creditors:
The Interim Resolution Professional was instructed to constitute the Committee of Creditors promptly, within three weeks from the date of the order. The 'Corporate Debtor' and associated personnel were directed to cooperate with the Professional in managing the affairs and accessing necessary information.

6. Public announcement of initiation of Corporate Insolvency Resolution Process:
The Interim Resolution Professional was mandated to cause a public announcement within three days of the initiation of the Corporate Insolvency Resolution Process, as per the regulations, calling for the submission of claims against the 'Corporate Debtor'.

7. Reporting obligations of the Interim Resolution Professional:
The Interim Resolution Professional was required to file reports of events related to the 'Corporate Debtor' to the Tribunal every seventh day, ensuring transparency and accountability in the resolution process.