# In the matter of Lotus Auto Engineering Pvt. Ltd. (IB)-31(PB)-2018

> NCLT judgment dated 2020-06-08. Citation: TCN-2020-NCLT-01227. The Resolution Professional (RP) filed an application seeking modification of the liquidation…

- **Court:** NCLT
- **Order date:** 8 Jun 2020
- **Citation:** TCN-2020-NCLT-01227
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lotus-auto-engineering-pvt-ltd-ib-31pb-2018-0ea2d9d6

## Summary

### Background

The Resolution Professional (RP) filed an application seeking modification of the liquidation order, proposing to become the liquidator himself, as his name was initially proposed by the Committee of Creditors (CoC). However, the bench notes that the RP's name was not present when Sanjay Kumar Jha was appointed as Liquidator. The RP seeks correction of the order to appoint him as Liquidator instead of Sanjay Kumar Jha, who was mistakenly appointed.

## Facts

The Resolution Professional (RP) applied to modify the liquidation order, wanting to be appointed as the liquidator. The RP's name was initially proposed by the Committee of Creditors (CoC). Sanjay Kumar Jha was appointed as Liquidator, but the RP claims this was a mistake. The RP seeks to replace Sanjay Kumar Jha as Liquidator. The application lacked the recommendation and consent of the Resolution Professional to continue as Liquidator, which is relevant because it influenced the bench's decision to appoint someone else. The court has directed the appointed Liquidator to explain why the application should not be allowed, indicating a potential issue with the appointment process or the RP's initial exclusion.

## Issues and analysis

### Issue 1: Whether the Resolution Professional's application for modification of the liquidation order to …

**Ratio:** The court has the discretion to appoint a liquidator based on the circumstances and the

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**Reasoning:** The court notes that the RP's recommendation and consent to continue as Liquidator was

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**Interpretation:** The court interprets the Insolvency & Bankruptcy Code as granting it the

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**Application:** In this case, the court directs the appointed Liquidator to explain why the

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## Parties

- **Judges:** SH. B.S.V.…; Sh. Hemant Kumar…
- **Appellants:** Oriental Bank of…
- **Respondents:** Lotus Auto…

## Timeline

- **2020-06-08 — Order Del…**: Order delivered regarding the application…
- **2020-06-12 — Next Hea…**: The matter is listed for…

## 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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