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TMI Blog2018 (7) TMI 2126X X X X Extracts X X X X X X X X Extracts X X X X ..... mber of the Committee of Creditors has preferred this appeal against order dated 15th May, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi in Company Petition No. (IB)178(PB)/2017, whereby Mr. K. G. Somani, who was proposed to act as Resolution Professional by the majority voting share of the Committee of Creditors has been held to be ineligible on the ground that he was in the panel of erstwhile 'State Bank of Hyderabad', which is now merged with the 'State Bank of India', which is one of the members of the Committee of Creditors. 2. The question arises for consideration in this appeal is whether the Adjudicating Authority can reject the proposal of the Committee of Creditors for appoi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide the name of proposed 'Interim Resolution Professional' in terms of Section 10(3)(b). For initiation of Corporate Insolvency Resolution Process by Operational Creditor under Section 9 no such compulsion has been made, though it is open to an 'Operational Creditor' to propose the name of the 'Interim Resolution Professional'. The only bar for appointment of an Resolution Professional is that if any disciplinary proceeding is pending against such proposed Resolution Professional he cannot be appointed. 7. There is no other ineligibility prescribed for appointment of Interim Resolution Professional or Resolution Professional, either under I&B Code or the Regulations framed by the IBBI. However, in a particular case, the Adjudicating Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them to the Adjudicating Authority. (4) The Adjudicating Authority shall forward the name of the proposed resolution professional to the Board for its confirmation and a resolution professional shall be appointed in the same manner as laid down in section 16. (5) Where any disciplinary proceedings are pending against the proposed resolution professional under sub-section (3), the resolution professional appointed under section 22 shall continue till the appointment of another resolution professional under this section." 10. From the aforesaid provision it is clear that during the Corporate Insolvency Resolution Process, at any time, if the Committee of Creditors 'is of opinion' that the Resolution Professional appointed under Section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord any adverse opinion for replacement of Resolution Professional, it will not only harm him for the present but will also affect him in future during appointment as Resolution Professional in another proceeding. In such case, the Committee of Creditor will have to refer the matter to IBBI for initiation of departmental proceeding, which is also not desirable in all the cases. (ii) If the Committee of Creditors forms opinion on the basis of performance of the Resolution Professional and not because of allegation, it will also go against the Resolution Professional in interest of the Resolution Process. 15. We have already held that except for pendency of a disciplinary proceeding or ineligibility in terms of provisions of the I&B Code, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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