# In the matter of M/s IDBI Bank Limited
Vs.
C.J. Davi Company Appeal (AT) (CH) (Ins) No. 116 of 2022

> NCLAT judgment dated 2022-08-02. Citation: TCN-2022-NCLAT-00309. The appeal arises from an order dated 9th February 2022, passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 2 Aug 2022
- **Citation:** TCN-2022-NCLAT-00309
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-idbi-bank-limited-vs-cj-davi-company-appeal-9e74586a

## Summary

### Background

The appeal arises from an order dated 9th February 2022, passed by the Adjudicating Authority (National Company Law Tribunal, Kochi Bench, Kerala) in CP (IB) No. 29/KOB/2021. The appellant, IDBI Bank Limited, filed an application under Section 7 of the I&B Code, 2016, seeking initiation of CIRP against the Corporate Debtor. The Adjudicating Authority admitted the application on 21.12.2021 and appointed Mr. C.J. Davis as the Interim Resolution Professional (IRP). The IRP constituted the CoC, naming IDBI Bank as the major financial creditor with 98.03% voting rights. The CoC proposed and recommended the appointment of Shri CA Mahalingam Suresh Kumar as the Resolution Professional (RP). However, the Adjudicating Authority rejected the application, leading to the

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## Facts

IDBI Bank Limited, the Appellant and a financial creditor, filed an application under Section 7 of the I&B Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Tip Top Furniture Private Limited, the Corporate Debtor. The Adjudicating Authority admitted the application on 21.12.2021 and appointed Mr. C.J. Davis as the Interim Resolution Professional (IRP). The IRP constituted the Committee of Creditors (CoC), with IDBI Bank holding 98.03% of the voting rights. In the first CoC meeting held on 21.01.2022, the CoC unanimously resolved to appoint Shri CA Mahalingam Suresh Kumar as the Resolution Professional (RP), replacing the IRP. The Adjudicating Authority rejected the CoC's decision, stating that the proposed RP was handling too many

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the CoC's decision to appoint Shri CA …

**Ratio:** Section 22 of the I&B Code, 2016, empowers the Committee of Creditors (CoC) to

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**Reasoning:** The Tribunal reasoned that the CoC, with IDBI Bank holding 98.03% of the voting rights,

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**Interpretation:** Section 22 of the I&B Code grants significant autonomy to the CoC in the

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**Application:** In this case, the CoC had unanimously resolved to appoint Shri CA Mahalingam

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## Parties

- **Judges:** M. Venu…; Kanthi Na…; +1 more
- **Appellants:** IDBI Bank L…
- **Respondents:** Tip Top Furniture…; C.J. D…

## Timeline

- **2021-12-21 — CIRP Application…**: The Adjudicating Authority admitted the application filed by IDBI Bank under Section 7 of…
- **2022-01-21 — First CoC M…**: The first meeting of the Committee of Creditors (CoC) was held, and the CoC unanimously…

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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/ms-idbi-bank-limited-vs-cj-davi-company-appeal-9e74586a