State Bank Of India & Anr vs Ajay Agarwal & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 775 of 2018
Ratio decidendi
The rule this decision rests on
Where the committee of creditors has ceased to exist as a body, having become functus officio by reason of the expiry of the 270-day period for completion of the corporate insolvency resolution process, an appeal seeking removal of the resolution professional cannot be granted where the liquidation order has already been passed on the resolution professional's application, because the liquidation order, having been made after the statutory period had lapsed, cannot be declared illegal on that basis.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
State Bank of India & anr. ...Appellants
Versus
Ajay Agarwal & Ors. ...Respondents
Company Appeal (AT) (Insolvency) No. 776 of 2018
IN THE MATTER OF:
State Bank of India & anr. ...Appellants
Versus
Mr. Venakataramanarao Nagarajan, Resolution Professional & Anr. ...Respondents
Present: For Appellant (s) : Mr. Om Prakash, Senior Advocate assisted by Mr. M. Anbalagan and Ms. Madhusmita Bora, Advocates
ORDER
13.12.2018 These appeals have been preferred by 'State Bank of India'
(Financial Creditors) and another against the order dated 9th November, 2018
passed by the Adjudicating Authority (National Company Law Tribunal), Single
Bench, Chennai whereby the application filed by the appellant(s) on behalf of
'committee of creditors' to remove Mr. V. Nagarajan, 'Resolution Professional' has
been rejected and order of liquidation has been passed u/s 33(1)(a)/34(1) of the
Insolvency and Bankruptcy Code, 2016 ('I&B Code' for short)
Learned counsel appearing on behalf of the appellant(s) submitted that
'committee of creditors' by 100% majority votes decided to remove Mr. Mr. V.
[Type here] 2
Nagarajan, 'Resolution Professional' but in spite of the same miscellaneous
application preferred by the 'committee of creditors' have been rejected and the
application preferred by Mr. V. Nagarajan, Resolution Professional for liquidation
has been approved.
From the record we have heard the learned Counsel for the appellant and
perused the record.
We find that no 'resolution plan' was approved by the 'committee of
creditors' and in the meantime 270 days having lapsed on 5th of September,
2018, the 'Resolution Professional' filed a miscellaneous application for
liquidation, which is accepted and order of liquidation has been passed. On
such order, as the 'committee of creditors' ceased to exist and become functus
officio even if we set aside the impugned order dated 31st October, 2018 and
remove Mr. V. Nagarajan, the order of liquidation cannot be declare illegal as
more than 270 days having passed. For the reason aforesaid no relief can be
granted. The appeal is dismissed. No cost.
However, this order passed by the Appellate Tribunal does not mean that
we have given a finding relating to performance or activity of Mr. V. Nagarajan,
Resolution Professional/liquidator in which is for the IBBI to decide pursuant to
complaints made against him, uninfluenced by this order.
[Justice S.J. Mukhopadhaya] Chairperson
[ JusticeBansi Lal Bhat ] Member(Judicial) /ns/uk/
Company Appeal (AT) (Insolvency) Nos. 775 & 776 of 2018
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