# In the matter of Aesthetic Stone Arts India Private Limited IA No. 192-JPR-2020 in CP No. (IB)-131-9-JPR-2019

> NCLT judgment dated 2020-10-15. Citation: TCN-2020-NCLT-00380. The case involves an application (IA No. 192/JPR/2020) filed by Punjab National Bank, the sole…

- **Court:** NCLT
- **Order date:** 15 Oct 2020
- **Citation:** TCN-2020-NCLT-00380
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aesthetic-stone-arts-india-private-limited-ia-no-192-jpr-2020-in-cp-no-ib-131-9-1d9cd069

## Summary

### Background

The case involves an application (IA No. 192/JPR/2020) filed by Punjab National Bank, the sole member of the Committee of Creditors (CoC) of the Corporate Debtor, Aesthetic Stone Arts India Private Limited. The application was filed under Section 22(3)(b) of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 11 of the National Company Law Tribunal Rules, 2016. The purpose of the application was to replace the Interim Resolution Professional (IRP) Ms. Anuradha Gupta with Mr. Vijendra Bangar as the Resolution Professional (RP) of the Corporate Debtor. The insolvency petition was initially filed by Mr. Sanwar Mal Tiwari under Section 9 of the IBC, 2016, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

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## Facts

Punjab National Bank, as the sole member of the Committee of Creditors (CoC) for Aesthetic Stone Arts India Private Limited, filed an application to replace the Interim Resolution Professional (IRP), Ms. Anuradha Gupta, with Mr. Vijendra Bangar as the Resolution Professional (RP). The Corporate Insolvency Resolution Process (CIRP) was initiated against Aesthetic Stone Arts India Private Limited following a petition filed by Mr. Sanwar Mal Tiwari under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The petition was admitted on 04.03.2020, and Ms. Anuradha Gupta was appointed as the IRP. The first meeting of the CoC took place on 15.07.2020, where the CoC resolved to replace the IRP with Mr. Vijendra Bangar. The Applicant stated that it is the sole

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors (CoC) has the power to replace the Interim Resolution …

**Ratio:** Section 22(2) of the IBC, 2016 grants the CoC the authority to replace the appointed IRP

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**Reasoning:** The court reasoned that the power of the CoC to replace the IRP with RP in the first CoC

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**Interpretation:** Section 22 of the IBC provides a mechanism for the CoC to exercise its judgment

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**Application:** In this case, the Applicant Bank, being the sole member of the CoC, exercised

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## Parties

- **Judges:** Ajay Kumar…; RaghuNa…
- **Appellants:** Punjab National…
- **Respondents:** Aesthetic Stone…

## Timeline

- **2020-03-04 — Admission of Insolvency…**: The Adjudicating Authority admitted the insolvency petition filed by Mr. Sanwar Mal…
- **2020-07-15 — First CoC M…**: The IRP conducted the first meeting of the CoC, where the CoC resolved to replace the IRP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 22(3) — Appointment of resolution professional](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-22)

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