# In the matter of Invent Assets Securitisation & Reconstruction Pvt.
Ltd. & Ors. Vs. Rajmal Labhchand Mogra, Company Appeal (AT) (Insolvency) No. 709 of 2019

> NCLAT judgment dated 26 Nov 2021. Citation: TCN-2021-NCLAT-00039. This appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLAT
- **Order date:** 26 Nov 2021
- **Citation:** TCN-2021-NCLAT-00039
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/invent-assets-securitisation-reconstruction-pvt-ltd-ors-vs-rajmal-labhchand-mogr-cefd479a

## Summary

### Background

This appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, challenging an order dated June 26, 2019, passed by the Adjudicating Authority (NCLT, Mumbai Bench). The original proceedings involved a Company Petition filed under Section 9 of the Code by Elecon Engineering Co. Ltd. to initiate the Corporate Insolvency Resolution Process (CIRP) against Enviro Bulkk Handling System Pvt. Ltd. (Corporate Debtor). The Adjudicating Authority admitted the petition on December 4, 2017, and subsequently appointed Mr. Rajmal Labhchand Mogra as the Interim Resolution Professional (IRP) on June 18, 2018. The IRP issued a public announcement on June 26, 2018, and the first Committee of Creditors (CoC) meeting was held on July 16, 2018. During this meeting, the CoC, comprising Invent Assets Securitisation and Reconstruction Pvt. Ltd. (72.56% voting rights) and Saraswat Co-operative Bank Ltd. (27.44% voting rights), decided not to confirm Mr. Mogra as the Resolution Professional (RP) and instead resolved to replace him. An application for his replacement was filed on July 31, 2018.

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## Facts

A Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) was filed by Elecon Engineering Co. Ltd. to initiate the Corporate Insolvency Resolution Process (CIRP) against Enviro Bulkk Handling System Pvt. Ltd. (Corporate Debtor). The Adjudicating Authority admitted this petition on December 4, 2017. Subsequently, on June 18, 2018, the Adjudicating Authority appointed Mr. Rajmal Labhchand Mogra as the Interim Resolution Professional (IRP) for the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the Interim Resolution Professional (IRP) is entitled to receive fees until the date of his…

**Ratio:** An Interim Resolution Professional (IRP) is not entitled to continue functioning or claim…

**Reasoning:** The court reasoned that the entitlement of the IRP to fees is governed by the statutory…

**Interpretation:** The court interpreted **Section 22(5)** as a crucial provision that empowers…

**Application:** Applying this interpretation to the facts, the court found that the CoC had…

## Parties

- **Judges:** Ashok Bh…
- **Advocates:** For Appel…; Darpan Wadhwa,…; +5 more

## Timeline

- **December 4, 2017 — Petition Ad…**: Adjudicating Authority admitted the Company Petition under Section 9 of the Code against…
- **June 18, 2018 — IRP Appo…**: Mr. Rajmal Labhchand Mogra was appointed as…

## 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)

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