State Bank Of India & Anr vs Venakataramanarao Nagarajan, ...

ICICI Bank Ltd. ...Appellant

Versus

Mr. Venakataramanarao Nagarajan, Resolution Professional ...Respondent

Company Appeal (AT) (Insolvency) No. 774 of 2018

IN THE MATTER OF:

State Bank of India & anr. ...Appellants

Versus

Mr. Venakataramanarao Nagarajan, Resolution Professional ...Respondent

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 'ICICI Bank' and 'State

Bank of India' (Financial Creditors) against the order dated 31st October 2018 2

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.

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.

Company Appeal (AT) (Insolvency) Nos. 772 & 774 of 2018 3

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. 772 & 774 of 2018