# In the matter of  Luni Power Company Pvt. Ltd. IA Nos. 270-2020 & 271-2020 In CP (IB) No. 122-Chd-HP-2019

> NCLT judgment dated 2020-08-10. Citation: TCN-2020-NCLT-00874. The case involves an application (IA No. 271/2020) filed by the sole COC Member, Central Bank…

- **Court:** NCLT
- **Order date:** 10 Aug 2020
- **Citation:** TCN-2020-NCLT-00874
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/luni-power-company-pvt-ltd-ia-nos-270-2020-271-2020-in-cp-ib-no-122-chd-hp-2019-edb697de

## Summary

### Background

The case involves an application (IA No. 271/2020) filed by the sole COC Member, Central Bank of India, under Section 22(3)(b) of the Insolvency and Bankruptcy Code (IBC), seeking the appointment of Mr. Sachin Gopal Jathar as the Resolution Professional (RP) by replacing the existing Interim Resolution Professional (IRP), Mr. Sanjay Kumar Agarwal. The Corporate Insolvency Resolution Process (CIRP) was initiated against Luni Power Company Pvt. Ltd. on 23.12.2019, when CP (IB) No. 122/Chd/HP/2019 was admitted. Mr. Sanjay Kumar Agarwal was appointed as IRP on the same day. The COC resolved to confirm Mr. Sanjay Kumar Agarwal as the RP, but before the application could be filed, Mr. Agarwal was arrested by the CBI on 11.02.2020 and later released on bail.

## Facts

The Central Bank of India, acting as the financial creditor and sole member of the Committee of Creditors (COC), initiated Corporate Insolvency Resolution Process (CIRP) against Luni Power Company Pvt. Ltd. The CIRP was initiated on 23.12.2019, and Mr. Sanjay Kumar Agarwal was appointed as the Interim Resolution Professional (IRP). Subsequently, the COC resolved to confirm Mr. Agarwal as the Resolution Professional (RP). However, before the formal application for confirmation could be filed, Mr. Agarwal was arrested by the CBI on 11.02.2020, although he was later released on bail. Following Mr. Agarwal's arrest, the Central Bank of India convened a COC meeting on 18.02.2020 and resolved to appoint Mr. Sachin Gopal Jathar as the new RP in place of Mr. Agarwal. The

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## Issues and analysis

### Issue 1: Whether Mr. Sachin Gopal Jathar should be appointed as the Resolution Professional, replacing Mr. …

**Ratio:** The ratio is based on the power of the COC to appoint a new RP under Section 22(3)(b) of

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**Reasoning:** The court reasoned that the COC, being the sole member, had resolved to appoint Mr.

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**Interpretation:** The interpretation involves the application of Section 22(3)(b) of the IBC,

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** RAGHU N…; Ajay Kumar…; +1 more
- **Appellants:** Central Bank of…
- **Respondents:** M/s Luni Power…

## Timeline

- **2019-12-23 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Luni Power Company…
- **2019-12-23 — Appointment…**: Mr. Sanjay Kumar Agarwal was appointed as the…

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