# In the matter of Biz 2 Credit Info Services Pvt. Ltd. (IB)-3335-ND-2019

> NCLT judgment dated 2021-08-26. Citation: TCN-2021-NCLT-01274. The Operational Creditor filed an application seeking to substitute the Authorised…

- **Court:** NCLT
- **Order date:** 26 Aug 2021
- **Citation:** TCN-2021-NCLT-01274
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/biz-2-credit-info-services-pvt-ltd-ib-3335-nd-2019-a42e7d38

## Summary

### Background

The Operational Creditor filed an application seeking to substitute the Authorised Representative of the Applicant Company and to record the Settlement Agreement dated 29.07.2021. The applicant sought replacement of the Authorised Representative due to a fresh Board Resolution dated 15.07.2021. The initial Board Resolution dated 31.07.2019 had authorised Mr. Mahender Singh Negi to file an application under Section 9 of IBC. A new resolution dated 15.07.2021 authorised Mr. Ravi, a Director, to represent the company.

## Facts

M/s Prolitus Technologies Pvt. Ltd. filed an application under Section 9 of the IBC against M/s Biz2Credit Info. Services Pvt. Ltd. An application was filed to substitute the Authorised Representative of the Applicant Company and to take the Settlement Agreement executed between the parties dated 29.07.2021 on record. The initial Board Resolution dated 31.07.2019 authorised Mr. Mahender Singh Negi to file the application. A new resolution dated 15.07.2021 authorised Mr. Ravi, a Director, to represent the company. A settlement was reached between the parties, and the applicant sought to withdraw the main IB application.

## Issues and analysis

### Issue 1: Whether the Authorised Representative of the Applicant Company can be substituted based on a new …

**Ratio:** A company can change its Authorised

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**Reasoning:** The court considered the fresh Board Resolution dated 15.07.2021, which authorised Mr.

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**Interpretation:** The interpretation is that a company has the right to change its representative

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**Application:** The court applied this principle by allowing the substitution of Mr. Ravi as

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## Parties

- **Judges:** DEEPTI M…; SUMITAPURKA…
- **Appellants:** M/s Prolitus…
- **Respondents:** M/s Biz2Credit…

## Timeline

- **2019-07-31 — 1st Board Res…**: The Board authorised Mr. Mahender Singh Negi to take steps for filing an application…
- **2021-07-15 — New Resol…**: The board authorised Mr. Ravi, the Director…

## 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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