# In the matter of Euro Ceramic Ltd. MA 1490-2019 in CP(IB)-66(MB)-2018

> NCLT judgment dated 2019-05-07. Citation: TCN-2019-NCLT-03421. The case involves MA 1490/2019 filed in CP(IB)-66(MB)/2018 before the Mumbai Bench of the…

- **Court:** NCLT
- **Order date:** 7 May 2019
- **Citation:** TCN-2019-NCLT-03421
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/euro-ceramic-ltd-ma-1490-2019-in-cpib-66mb-2018-71e24728

## Summary

### Background

The case involves MA 1490/2019 filed in CP(IB)-66(MB)/2018 before the Mumbai Bench of the National Company Law Tribunal (NCLT). The application was filed on 09.04.2019 by the Resolution Professional (RP) under Section 22(3)(b) of the Insolvency and Bankruptcy Code (IBC) for a change of Interim Resolution Professional (IRP). An earlier order was passed on 25.02.2019 under Section 7 of IBC in respect of the Corporate Debtor, Euro Ceramics Ltd., appointing Mr. Arun Kapoor as IRP. During a meeting on 27.03.2019, it was resolved to substitute the IRP, leading to the application for substitution.

## Facts

Anchor Leasing Pvt. Ltd. initiated insolvency proceedings against Euro Ceramic Ltd. An application, MA 1490/2019, was filed on 09.04.2019 by the RP under Section 22(3)(b) of the IBC for a change of IRP. Previously, on 25.02.2019, an order was passed under Section 7 of the IBC, designating Euro Ceramics Ltd. as the Corporate Debtor and appointing Mr. Arun Kapoor as the IRP. A meeting of the CoC held on 27.03.2019 resulted in a resolution to substitute the IRP. Consequently, Mr. CA Nirav Anupam Tarkas was appointed as the Resolution Professional. The newly appointed Resolution Professional consented to work. The outgoing IRP is required to handover all documents and information to the substituted Resolution Professional, and the CoC must reimburse the outgoing IRP's

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## Issues and analysis

### Issue 1: Whether the application for substitution of the Interim Resolution Professional (IRP) should be …

**Ratio:** The substitution of an IRP is permissible under the IBC, particularly when a resolution

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**Reasoning:** The court considered the resolution passed by the CoC on 27.03.2019, which recommended

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**Interpretation:** Section 22(3)(b) of the IBC allows the RP to apply for a change of IRP. The

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**Application:** Given the CoC's resolution and the new RP's consent, the court allowed the

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Anchor Leasing…
- **Respondents:** Euro Cerami…

## Timeline

- **2019-02-25 — Order under Section 7…**: An order was passed under Section 7 of the IBC in respect of Corporate Debtor; Euro…
- **2019-03-27 — CoC Meet…**: In the meeting of CoC held on 27.03.2019, it…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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