# In the matter of Langlai Tea and Industries Ltd. IA No. 32-2019 in CP (IB)-10-GB-2019

> NCLT judgment dated 2019-06-21. Citation: TCN-2019-NCLT-02821. The case involves an application (IA No. 32 of 2019) filed by the Committee of Creditors (COC)…

- **Court:** NCLT
- **Order date:** 21 Jun 2019
- **Citation:** TCN-2019-NCLT-02821
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/langlai-tea-and-industries-ltd-ia-no-32-2019-in-cp-ib-10-gb-2019-37bcef10

## Summary

### Background

The case involves an application (IA No. 32 of 2019) filed by the Committee of Creditors (COC) under Section 22(3)(b) of the Insolvency & Bankruptcy Code, 2016, seeking the replacement of the Interim Resolution Professional (IRP). The COC, in a meeting held on 26-05-2019, unanimously decided to replace the IRP with another IRP from the panel of the State Bank of India (SBI). The management of the Corporate Debtor (CD) Company undergoing Corporate Insolvency Resolution Process (CIRP) was reportedly not progressing well, prompting the COC's request.

## Facts

Langlai Tea and Industries Ltd. is the Corporate Debtor undergoing CIRP. The State Bank of India (SBI) is the Financial Creditor. The COC filed an application (IA No. 32 of 2019) seeking the replacement of the IRP. The COC held a meeting on 2019-05-26 and unanimously decided to replace the IRP due to unsatisfactory management of the CD Company. The court considered the application and the unanimous decision of the COC. The court directed the outgoing IRP to handover records to the incoming IRP within one week. The COC was directed to pay the fees and costs due to the IRP. The company petition CP (IB) 10/GB/2019 was listed for further progress report on 2019-07-25.

## Issues and analysis

### Issue 1: Whether the application filed by the COC for replacement of the IRP is maintainable under Section …

**Ratio:** Section 22 of the Insolvency & Bankruptcy Code, 2016, read with sub-section (3)(b),

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**Reasoning:** The court acknowledged the COC's authority under Section 22 of the IBC to replace the

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**Interpretation:** Section 22 of the IBC empowers the COC to make decisions regarding the IRP,

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**Application:** The COC's application was deemed maintainable as it was filed under Section 22

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## Parties

- **Judges:** Jinan…
- **Respondents:** Langlai Tea and…; State Bank of…

## Timeline

- **2019-05-26 — COC Meet…**: The COC held a meeting and…
- **2019-06-21 — Order Del…**: The court delivered the order allowing the replacement of the IRP and directing the…

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