Reliance Commercial Finance Limited And Ors vs Vista Mining Private Limited And Ors

Jinan K.R., J

This is an application under section 22(3)(b) of the Code filed by Hinduja Leyland Finance Limited, representing the Committee of Creditors for change of the current IRP Mr. Kunchan Dutta and to approve appointment of Mr. Soumitra Lahiri as IRP in his place. The applicant has the largest voting share (44.06%) in the CoC and the resolution for change of IRP has been approved by the CoC by a voting share of 85.31%.

The applicant has requested for urgent hearing in the matter since much time has elapsed after passing of the resolution for change of IRP on 19.03.2020 and the replacement has not taken place till now in view of the Covid 19 pandemic and lockdown situation all over the country. Having satisfied with the urgency trying to set up, the matter is listed for hearing on today (03.08.2020).

Heard the Ld. Counsel Ms. Vidushi Chokhani, for the applicant and Ld. Counsel Rahul Auddy for the IRP. Perused records.

The Corporate Debtor, M/s. Vista Mining Private Limited was placed under CIRP by an order dated 25.02.2020 of this Tribunal in CP(IB) No. 146/KB/2019 filed by financial creditor, Reliance Commercial Finance Limited and Mr. Kunchan Dutta was appointed the Interim Resolution Professional.

In the first meeting of the Committee of Creditors on 15.05.2020, the Interim Resolution Professional proposed to be confirmed as the Resolution Professional, however the Committee of Creditors did not approve the same in the 1st Meeting and the resolution to appoint the Interim Resolution Professional as the Resolution Professional failed by a vote of 84.01% votes. Thereafter the name of Mr. Soumitra Lahiri was proposed to be appointed as the Resolution Professional and the said proposal was put to vote by the Committee of Creditors in the 2nd Meeting of the Committee of Creditors held on 10th June 2020 a resolution was passed with 85.31% voting share for replacement of the IRP Mr. Kunchan Dutta and to appoint Mr. Soumitra Lahiri in respect of the CIRP of the Corporate Debtor for the remaining period.

Mr. Soumitra Lahiri, the proposed RP has given his consent in Form AA [under regulation 3(1A) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016] and he is also eligible to be appointed the Resolution Professional in the matter and there are no disciplinary actions/proceedings against him.

The applicant has prayed for the appointment of Mr. Soumitra Lahiri having registration No. IBBI/IPA-001/IP-P00734/2017-2018/11232 as the Resolution Professional in place of present Interim Resolution Professional, Mr. Kanchan Dutta with immediate effect.

This is an application made under section 22(3)(b) of the Code for replacing the IRP. Being satisfied that the CoC in its meeting held on 10th June 2020 decided to replace the IRP with Mr. Soumitra Lahiri an insolvency professional, with a voting percentage of 85.31%, this application is liable to be allowed u/s. 22(3)(b) of the Code. On a query from the Bench about the status of payment of fees of the IRP, Ld. Counsel Mr. Rahul Auddy, for the IRP submitted that in the COC meeting held on 14th July 2020, certain CIRP costs were approved. After the said COC meeting, certain costs have been incurred by the IRP on account of CIRP expenses, the professional fees of the legal advisor of the RP. The professional fees of the IRP till 3rd August 2020 is also due. The total of such unpaid CIRP cost is Rs. 66,218/- (Rs. Sixty-Six Thousand Two Hundred Eighteen Only). Ld. Counsel for the CoC submitted that the CoC will pay the said sum to the IRP.

In view of the above, IA(IB)/../KB/2020 in CP(IB) No. 146/KB/2019 is hereby allowed as under :

ORDER

i) The application is allowed by approving the appointment of Mr. Soumitra Lahiri an insolvency professional as the RP;

ii). The CIRP costs and IRP fee payable by the Committee of Creditors is fixed at Rs. 66,218/- (Rs. Sixty-Six Thousand Two Hundred Eighteen Only) as submitted on the side of the IRP and to be payable to him within one week from the date of receipt of the e copy of the order by the applicant;

iii) The IRP is directed to handover all the records with the incoming RP, Mr. Soumitra Lahiri, immediately preferably within one week;

iv) Registry is hereby directed to communicate the order to all the Applicants, Respondent through e-mail;

v) Registry is directed to send a copy of this order to IBBI through e-mail and free copy, for its confirmation as per Section 22(4) of the Code.

Certified copy of the order may be issued to all the concerned parties, if applied for, upon compliance with all requisite formalities.