# In the matter of KGS Sugar and Infra Corporation Ltd. CP(IB)No. 2156-NCLT-MB-2018

> NCLT judgment dated 2020-05-14. Citation: TCN-2020-NCLT-01359. The case involves an application filed by the Applicant/CoC (Canara Bank) seeking the…

- **Court:** NCLT
- **Order date:** 14 May 2020
- **Citation:** TCN-2020-NCLT-01359
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kgs-sugar-and-infra-corporation-ltd-cpibno-2156-nclt-mb-2018-5b03c130

## Summary

### Background

The case involves an application filed by the Applicant/CoC (Canara Bank) seeking the replacement of Mr. Balady Shekar Shetty, the present Resolution Professional. The resolution for the appointment of Mr. Pankaj Sham Joshi as Resolution Professional was passed by the CoC on 26.03.2020.

## Facts

The CoC (Canara Bank) filed an application seeking the replacement of the current Resolution Professional, Mr. Balady Shekar Shetty. The CoC passed a resolution on 2020-03-26 to appoint Mr. Pankaj Sham Joshi as the new Resolution Professional. The application was filed in relation to CP(IB)No.2156/NCLT/MB/2019. The court is considering the CoC's decision and has directed the forwarding of Mr. Joshi's name to IBBI for confirmation. The hearing was conducted through video conferencing.

## Issues and analysis

### Issue 1: Whether the application for replacement of the Resolution Professional by the CoC is valid and …

**Ratio:** The CoC has the authority to propose a replacement of the Resolution Professional,

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**Reasoning:** The court acknowledges the CoC's decision to replace the Resolution Professional and

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**Interpretation:** The CoC's decision is interpreted as a valid exercise of its powers under the

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**Application:** The ratio is applied to the specific facts by the court's action of forwarding

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## Parties

- **Judges:** B.S.V. Prakash…
- **Appellants:** CoC – KGS Sugar &…
- **Respondents:** KGS Sugar and…; Balady Shekar…

## Timeline

- **2020-03-26 — CoC Resol…**: The CoC passed a resolution for the appointment of Mr. Pankaj Sham Joshi as Resolution…
- **2020-05-14 — Hearing…**: Hearing held on the application for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 27(3) — Replacement of resolution professional by…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-27)

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