# In the matter of Aanchal Ispat Limited C.P.(IB) NO. 1129-KB-2019

> NCLT judgment dated 2020-07-01. Citation: TCN-2020-NCLT-01082. This is an interlocutory application filed under Section 22 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Jul 2020
- **Citation:** TCN-2020-NCLT-01082
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aanchal-ispat-limited-cpib-no-1129-kb-2019-5abefd2f

## Summary

### Background

This is an interlocutory application filed under Section 22 of the Insolvency and Bankruptcy Code, 2016, by the Committee of Creditors (CoC) in CP(IB)No.1129/KB/2019. The CoC sought to replace the Interim Resolution Professional (IRP) Mr. Bijay Murmuria with Mr. Santanu Brahma as the Resolution Professional for the Corporate Debtor, Aanchal Ispat Limited. The application was filed due to a delay caused by the countrywide lockdown and because the IRP's claimed fee was significantly higher than the proposed Resolution Professional's fee.

## Facts

Shyam Metalics and Energy Limited is the Operational Creditor. Aanchal Ispat Limited is the Corporate Debtor. The Committee of Creditors (CoC) of Aanchal Ispat Limited, represented by Karur Vysya Bank Limited, filed an application to replace the Interim Resolution Professional (IRP) Mr. Bijay Murmuria with Mr. Santanu Brahma. The application was filed in CP(IB)No.1129/KB/2019 under Section 22 of the Insolvency and Bankruptcy Code, 2016. The reason for the replacement was the high fee claimed by the IRP, Mr. Bijay Murmuria, which was more than 3.5 times the fee of the proposed Resolution Professional. The CoC had a 100% voting share and provided written consent for the replacement. The IRP's counsel raised the issue of unpaid fees and costs. The CoC agreed to pay the

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## Issues and analysis

### Issue 1: Whether the application for replacement of the Interim Resolution Professional (IRP) by the …

**Ratio:** The appellate Tribunal has observed that in an application filed under Section 22 and 27

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**Reasoning:** The court relied on the appellate Tribunal's observation that no reason is required for

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**Interpretation:** Section 22 of the Insolvency and Bankruptcy Code, 2016, allows for the

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**Application:** In this case, the CoC's decision to replace the IRP, supported by their 100%

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Shyam Metalics…
- **Respondents:** Aanchal Ispat…

## Timeline

- **2019-01-01 — Filing of CP(IB) No.…**: The original Corporate Insolvency Resolution…
- **2020-07-01 — Date of H…**: The hearing for the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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