The case involves an application (MA/80(CHE)/2021) within an existing insolvency proceeding (IBA/578/2019) where the Adjudicating Authority questioned the reason for replacing the Resolution Professional (RP) during the 12th Committee of Creditors (CoC) meeting on February 5, 2021, especially as the Corporate Debtor was nearing liquidation. The applicant cited 'operational need' for the change, but the Adjudicating Authority requested a detailed affidavit justifying this need. The applicant, State Bank of India, being the sole financial creditor, now seeks to withdraw the application.
The State Bank of India initiated insolvency proceedings against Mathur Sabapathy Viswanathan under Section 27 of the IBC, 2016. During the proceedings, a need arose to replace the Resolution Professional (RP), which was discussed in the 12th CoC meeting on 2021-02-05. The State Bank of India, being the sole financial creditor and thus the sole member of the CoC, cited 'operational need' as the reason for the replacement. The Adjudicating Authority requested a detailed affidavit to justify this change, especially given that the Corporate Debtor was nearing liquidation. Subsequently, the State Bank of India sought to withdraw the application for RP replacement, but the court required a detailed affidavit seeking permission for the withdrawal.
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The 12th Committee of Creditors (CoC) meeting…
The Adjudicating Authority directed the…
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The case involves an application (MA/80(CHE)/2021) within an existing insolvency proceeding (IBA/578/2019) where the Adjudicating Authority questioned the reason for replacing the Resolution Professional (RP) during the 12th Committee of Creditors (CoC) meeting on February 5, 2021, especially as the Corporate Debtor was nearing liquidation. The applicant cited 'operational need' for the change, but the Adjudicating Authority requested a detailed affidavit justifying this need. The applicant, State Bank of India, being the sole financial creditor, now seeks to withdraw the application.
The State Bank of India initiated insolvency proceedings against Mathur Sabapathy Viswanathan under Section 27 of the IBC, 2016. During the proceedings, a need arose to replace the Resolution Professional (RP), which was discussed in the 12th CoC meeting on 2021-02-05. The State Bank of India, being the sole financial creditor and thus the sole member of the CoC, cited 'operational need' as the reason for the replacement. The Adjudicating Authority requested a detailed affidavit to justify this change, especially given that the Corporate Debtor was nearing liquidation. Subsequently, the State Bank of India sought to withdraw the application for RP replacement, but the court required a detailed affidavit seeking permission for the withdrawal.
The 12th Committee of Creditors (CoC) meeting…
The Adjudicating Authority directed the…
Sign in to view related legal provisions.