# In the matter of Dr. K.V. Srinivas RP Sainath Estates Pvt. Ltd.,Company Appeal (AT)(CH)(Ins)No. 319 of 2022

> NCLAT judgment dated 2022-12-15. Citation: TCN-2022-NCLAT-00026. The case involves an appeal against an order dated 08.07.2022 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 15 Dec 2022
- **Citation:** TCN-2022-NCLAT-00026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dr-kv-srinivas-rp-sainath-estates-pvt-ltdcompany-appeal-atchinsno-319-of-2022-eee07404

## Summary

### Background

The case involves an appeal against an order dated 08.07.2022 passed by the Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench – I, Hyderabad) in IA No. 71 of 2022 in CP(IB) No. 651 / 7 / HDB / 2018. The appellant, the Resolution Professional, challenges the impugned order which placed the Corporate Debtor under liquidation and replaced the appellant as the liquidator, appointing another individual in contravention of the provisions of Section 34 (1) and Section 27 (2) of the Insolvency and Bankruptcy Code (IBC), 2016.

## Facts

1. Dr. K.V. Srinivas, the Resolution Professional, was appointed for Sainath Estates Private Limited ('Corporate Debtor').
2. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor.
3. The Committee of Creditors (CoC) was constituted.
4. The Appellant was confirmed as the Resolution Professional (RP) as per Section 22 (2) of the I&B Code, 2016.
5. A Resolution Plan was presented before the CoC, where the Promoter of the Corporate Debtor was the Resolution Applicant.
6. On 19.09.2020, the CoC approved the Resolution seeking the appointment of the Appellant as the Liquidator.
7. The Adjudicating Authority directed the RP to convene a fresh CoC meeting and obtain voting on the Resolution Plan.
8. On 07.01.2021, the CoC approved the

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in replacing the Resolution Professional with …

**Ratio:** The Adjudicating Authority has the power to replace the Resolution Professional as

…

**Reasoning:** The court reasoned that the Adjudicating Authority had applied its mind and exercised its

…

**Interpretation:** The interpretation of Section 34(4) of the IBC is that while it provides

…

**Application:** In this case, the Adjudicating Authority considered the lenders'

…

## Parties

- **Judges:** M. Venu…; Naresh Sa…
- **Appellants:** Dr.K.V.Sr…
- **Respondents:** Sainath Estates…

## Timeline

- **2019-09-26 — First Meeting of…**: The first meeting of the Committee of Creditors was held, wherein the Appellant was…
- **2020-09-19 — Committee of Creditors…**: The Committee of Creditors approved the Resolution seeking the appointment of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/dr-kv-srinivas-rp-sainath-estates-pvt-ltdcompany-appeal-atchinsno-319-of-2022-eee07404