# In the matter of Vinay Rai vs. Technology Development Board & Ors.

> NCLAT judgment dated 2024-11-08. Citation: TCN-2024-NCLAT-00113. The appeal challenges an order passed by the National Company Law Tribunal (NCLT) which…

- **Court:** NCLAT
- **Order date:** 8 Nov 2024
- **Citation:** TCN-2024-NCLAT-00113
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vinay-rai-vs-technology-development-board-ors-f63739d7

## Summary

### Background

The appeal challenges an order passed by the National Company Law Tribunal (NCLT) which partly allowed an application for the replacement of a Resolution Professional (RP) in an insolvency resolution process.

## Facts

Mr. Vinay Rai, the Personal Guarantor, filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) for his insolvency resolution process. The NCLT, after obtaining confirmation from the IBBI, appointed Mr. Prabhat Ranjan Singh as the Resolution Professional (RP) on December 6, 2023, and directed him to submit a report under Section 99 of the IBC. The RP submitted his report on February 14, 2024. Subsequently, on February 28, 2024, the Financial Creditor, Technology Development Board, filed IA No. 1904 of 2024, seeking the removal of Mr. Prabhat Ranjan Singh as RP. The Financial Creditor argued that Mr. Prabhat Ranjan Singh was not competent or independent, citing his previous representation of Usha India Ltd. (the Corporate Debtor) and

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in allowing the replacement of the Resolution Professional …

**Ratio:** The Adjudicating Authority did not commit any error in allowing the application for

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**Reasoning:** The NCLAT reasoned that Section 98(1) of the IBC allows both the debtor and creditor to

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**Interpretation:** The court interpreted Section 98(1) of the IBC to mean that while the debtor or

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**Application:** In this case, the RP had previously represented the Corporate Debtor and the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Vinay…; Vinay Rai…
- **Respondents:** TECHNOLOGY…; Prabhat Ranjan…
- **Advocates:** For Appel…; Rakesh…; +10 more

## Timeline

- **December 6, 2023 — RP Appoin…**: The Adjudicating Authority appointed Mr. Prabhat Ranjan Singh as Resolution Professional…
- **February 14, 2024 — RP Report Sub…**: The Resolution Professional submitted his…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94(1) — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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