# In the matter of MBL Infrastructure Ltd.

> NCLT judgment dated 2018-02-28. Citation: TCN-2018-NCLT-01762. RBL Bank Ltd initiated a Corporate Insolvency Resolution Process (CIRP) against MBL…

- **Court:** NCLT
- **Order date:** 28 Feb 2018
- **Citation:** TCN-2018-NCLT-01762
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mbl-infrastructure-ltd-62e25b0d

## Summary

### Background

RBL Bank Ltd initiated a Corporate Insolvency Resolution Process (CIRP) against MBL Infrastructure Ltd. An application was filed by the Resolution Professional (RP) seeking directions to convene a meeting of the Committee of Creditors (CoC) for the purpose of appointing M/s. SARC and Associates as the statutory auditors of the corporate debtor. Alternatively, the RP sought directions from the Adjudicating Authority to dispense with the CoC's approval for the auditor's appointment. The RP stated that the application was necessary due to the non-existence of the CoC and failure to obtain prior approval for appointing a new auditor, as required under Section 28(1)(m) of the Insolvency and Bankruptcy Code, 2016. The CIRP had already expired, and the Resolution Plan's

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## Facts

RBL Bank Ltd initiated CIRP against MBL Infrastructure Ltd. The Resolution Professional (RP) filed an application (CA(IB) No. 168/KB/2018) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions to convene a meeting of the Committee of Creditors (CoC) to approve the appointment of M/s. SARC and Associates as statutory auditors. Alternatively, the RP sought dispensation from requiring CoC approval. The RP argued that the CoC was non-existent and prior approval couldn't be obtained, as required by Section 28(1)(m) of the IBC, 2016. The CIRP period had expired, and the Resolution Plan's approval was pending due to an appeal before the NCLAT (Company Appeal (AT) (Insolvency) No. 330 of 2017). The NCLAT had directed the Adjudicating Authority to

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should direct the convening of a meeting of the Committee of …

**Ratio:** The Adjudicating Authority has the power to direct the convening of a CoC meeting for

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**Reasoning:** The court reasoned that the RP's application was filed to comply with statutory

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**Interpretation:** The Insolvency and Bankruptcy Code, 2016, provides a framework for the

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**Application:** In this case, the court considered the fact that the Resolution Plan was

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## Parties

- **Judges:** Jinan…
- **Appellants:** RBL Bank…
- **Respondents:** MBL Infrastructure…

## Timeline

- **2017-01-01 — NCLAT Ap…**: An appeal was preferred before the Hon'ble NCLAT (Company Appeal (AT) (Insolvency) No.…
- **2017-11-11 — Annual General…**: Annual General Meeting held with a resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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