# In the matter of JMD Oils Pvt. Ltd. (IB)-373(PB)-2018

> NCLT judgment dated 2020-11-09. Citation: TCN-2020-NCLT-00277. The case involves an application filed for the appointment of a Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 9 Nov 2020
- **Citation:** TCN-2020-NCLT-00277
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jmd-oils-pvt-ltd-ib-373pb-2018-2901dcba

## Summary

### Background

The case involves an application filed for the appointment of a Resolution Professional (RP) under the Insolvency and Bankruptcy Code. The earlier RP, Mr. Sandeep Kumar Gupta, passed away on 01.06.2020. The appointment of a new RP is based on the CoC resolution dated 29.07.2020 and the consent form given by the proposed RP.

## Facts

Indian Overseas Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code against M/s. JMD Oils Pvt. Ltd. for initiating the Corporate Insolvency Resolution Process (CIRP). The original Resolution Professional (RP), Mr. Sandeep Kumar Gupta, passed away on 01.06.2020. A resolution was passed by the Committee of Creditors (CoC) on 29.07.2020 to appoint a new RP. Ms. Shalu Khanna, an Insolvency Professional with registration number IBBI/IPA-001/IPP00917/2017-2018/11523, provided her consent to act as the RP. The application before the NCLT was to formally appoint Ms. Khanna as the RP.

## Issues and analysis

### Issue 1: Whether the application for the appointment of Ms. Shalu Khanna as the Resolution Professional …

**Ratio:** The court has the power to appoint a new RP when the previous RP is unable to continue,

…

**Reasoning:** The previous RP's death created a vacancy that needed to be filled to continue the CIRP.

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**Interpretation:** The legal framework allows for the replacement of an RP to ensure the CIRP's

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**Application:** Given the death of Mr. Sandeep Kumar Gupta, the CoC's resolution to appoint Ms.

…

## Parties

- **Judges:** SH. B.S.V.…; HEMANT KUMAR…
- **Appellants:** Indian Overseas…
- **Respondents:** M/s. JMD Oils…

## Timeline

- **2020-06-01 — Death of…**: The earlier Resolution Professional,…
- **2020-07-29 — CoC Resol…**: The Committee of Creditors (CoC) passed a resolution to appoint Ms. Shalu Khanna as the…

## 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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