# In the matter of Punjab National Bank & Ors. Vs.
Piyush Colonisers Ltd.
Through Resolution Professional
Ashish Singh Company Appeal (AT) (Insolvency) No. 723 of 2022

> NCLAT judgment dated 2022-07-05. Citation: TCN-2022-NCLAT-00389. This is an appeal against the order dated 09.05.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 5 Jul 2022
- **Citation:** TCN-2022-NCLAT-00389
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/punjab-national-bank-ors-vs-piyush-colonisers-ltd-through-resolution-professiona-63589add

## Summary

### Background

This is an appeal against the order dated 09.05.2022 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Principal Bench, which allowed I.A. No.2073 of 2022 filed by the Resolution Professional. The application was for the replacement of the then Resolution Professional Mr. Umesh Garg and to appoint Mr. Ashish Singh as the new Resolution Professional. The Committee of Creditors (CoC) had passed a resolution on 18.04.2022 with 80.42% vote for removing Mr. Umesh Garg and replacing him with Mr. Ashish Singh.

## Facts

The Committee of Creditors (CoC) passed a resolution on 18.04.2022 with 80.42% vote to remove the existing Resolution Professional, Mr. Umesh Garg, and replace him with Mr. Ashish Singh. The Adjudicating Authority allowed the application for this replacement. The Appellant, a CoC member holding a minority voting share of 20%, filed an appeal challenging the appointment of Mr. Ashish Singh, claiming he is ineligible because he is a related party. The appeal was filed against the order dated 09.05.2022. The basis of the appeal is the appellant's claim that Ashish Singh is a related party and therefore ineligible to be appointed as Resolution Professional.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an error in replacing the Resolution Professional …

**Ratio:** The CoC has the power to replace the Resolution Professional with a requisite majority as

…

**Reasoning:** The court reasoned that the Adjudicating Authority did not err because the CoC had

…

**Interpretation:** Section 27 of the Code grants the CoC the authority to replace a Resolution

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**Application:** In this case, the CoC passed a resolution with 80.42% vote to replace Mr. Umesh

…

## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Punjab National…
- **Respondents:** Piyush Colonisers…

## Timeline

- **2022-04-18 — CoC Resol…**: The Committee of Creditors (CoC) passed a resolution with 80.42% vote for removing the…
- **2022-05-09 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi, Principal Bench…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 27 — Replacement of resolution professional by…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-27)

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