# In the matter of AB Garments Impex LLP CP(IB)No. 703-KB-2019

> NCLT judgment dated 2020-01-22. Citation: TCN-2020-NCLT-02223. The case involves Shree Maheshwari Fashions as the operational creditor and AB Garments Impex…

- **Court:** NCLT
- **Order date:** 22 Jan 2020
- **Citation:** TCN-2020-NCLT-02223
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ab-garments-impex-llp-cpibno-703-kb-2019-35677201

## Summary

### Background

The case involves Shree Maheshwari Fashions as the operational creditor and AB Garments Impex LLP as the corporate debtor. The initial IRP (Interim Resolution Professional) expressed a desire to discontinue their role due to health reasons. The Operational Creditor did not propose another name to appoint as RP.

## Facts

Shree Maheshwari Fashions initiated insolvency proceedings against AB Garments Impex LLP under Section 9 of the IBC. The initial IRP expressed a desire to discontinue their role due to health reasons. The Operational Creditor did not propose a replacement. The court then appointed Mr. Kamal Prakash Singh as the new Resolution Professional (RP). The outgoing IRP was directed to hand over all records to the new RP and submit fees and cost memos.

## Issues and analysis

### Issue 1: Whether the initial IRP can be …

**Ratio:** An IRP can be replaced if they are unable to

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**Reasoning:** The court acknowledged the IRP's submission regarding their ill health and their desire

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**Interpretation:** This acknowledges the practical limitations that may prevent an IRP from

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**Application:** The IRP's statement of ill health was accepted as a valid reason for

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Shree Maheshwari…
- **Respondents:** AB Garments Impex…

## Timeline

- **2020-01-22 — Hearing…**: Hearing held on January…
- **2020-03-23 — Next Ste…**: Case listed for filing further…

## 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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