Seth Thakurdas Khinvraj Rath vs Cals Refineries Ltd. & Ors

Seth Thakurdas Khinvraj Rath ...Appellant

Versus

Cals Refineries Ltd. & Ors. ...Respondents

Present:

For Appellant : Mr. Ankur Sood and Mr. Roshan Santhalia, Advocates

For 1st Respondent: Mr. Vinod Kumar Chaursia, Chartered Accountant and Mr. Rakesh Kumar Jain, Resolution Professional

For 2nd Respondent : Mr. Gulshan Kumar Gupta, Advocate

ORDER

02.07.2018 The appellant - 'Operational Creditor' has challenged the order

dated 30th May, 2018 passed by the Adjudicating Authority (National Company

Law Tribunal), New Delhi Bench whereby and whereunder the application

preferred by the appellant for removal of Mr. Rakesh Kumar Jain, 'Resolution

Professional' has been rejected and the said 'Resolution Professional' has been

directed to continue till the end of the proceedings. The application was filed

on the ground that the 'Resolution Professional' has resigned.

Learned counsel appearing on behalf of the appellant submits that in

absence of the 'Financial Creditor', the 'Committee of Creditors' was constituted

of 'Operational Creditors' and the appellant (Operational Creditor) is one of the 2

member of the 'Committee of Creditors'. He further submits that the when the

'Resolution Professional' was dissatisfied he resigned, therefore, the Adjudicating

Authority ought to have replace him.

Mr. Vinod Kr. Chaurasia, Chartered Accountant appears along with Mr.

Rakesh Kumar Jain, 'Resolution Professional'. It is submitted that the

Resolution Professional was dissatisfied with the remuneration, which has now

been settled. Therefore, he has no objection to continue.

At this stage, learned counsel for the appellant submits that the

'Committee of Creditors' intends to replace the 'Resolution Professional' as they

are not satisfied. However, such order cannot be passed in this appeal, as the

Resolution Professional cannot be removed except in accordance with Section

27(2) of the Insolvency and Bankruptcy Code, 2016.

For the reasons aforesaid, while we are not intend to interfere with the

impugned order dated 30th May, 2018, allow the 'Committee of Creditors' to act

in accordance with law.

The appeal stands disposed of with the aforesaid observations. No costs.

[Justice S.J. Mukhopadhaya] Chairperson

[ Justice Bansi Lal Bhat ] Member (Judicial)

/ns/uk

Company Appeal (AT) (Insolvency) No. 333 of 2018