# In the matter of NIIL Infrastrucuture Pvt. Ltd. (IB)-560(PB)-2017

> NCLT judgment dated 2018-05-29. Citation: TCN-2018-NCLT-01356. The application was filed because the Committee of Creditors (CoC) was considering Mr. Ajit…

- **Court:** NCLT
- **Order date:** 29 May 2018
- **Citation:** TCN-2018-NCLT-01356
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/niil-infrastrucuture-pvt-ltd-ib-560pb-2017-6b493099

## Summary

### Background

The application was filed because the Committee of Creditors (CoC) was considering Mr. Ajit Kumar as the Resolution Professional (RP) instead of confirming Mr. Sunder Khatri, the Interim Resolution Professional (IRP). Mr. Ajit Kumar's appointment was opposed because he is associated with Bank of Baroda, a member of the CoC with 53% voting share.

## Facts

The Committee of Creditors (CoC) was considering replacing the Interim Resolution Professional (IRP), Mr. Sunder Khatri, with Mr. Ajit Kumar as the Resolution Professional (RP). Mr. Ajit Kumar's appointment was opposed because he is associated with Bank of Baroda, a member of the CoC holding 53% of the voting share. The court raised concerns about the independence of an RP associated with a CoC member. The issue of the IRP's fees and expenses was also raised.

## Issues and analysis

### Issue 1: Whether an individual associated with a member of the Committee of Creditors (CoC) can be appointed …

**Ratio:** An RP must be independent and impartial to ensure a fair and transparent Corporate

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**Reasoning:** The court reasoned that an RP associated with a member of the CoC might not be able to

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**Interpretation:** The court interpreted Section 27(2) of the Insolvency and Bankruptcy Code,

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**Application:** The court applied this reasoning to the specific facts, where Mr. Ajit Kumar's

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Alchemist Asset…
- **Respondents:** NIIL Infrastructur…

## Timeline

- **2018-05-29 — Order Del…**: Order delivered by the National…
- **2018-06-13 — Next Hea…**: Notice to the ex-management, director namely M/s. NIIL Infrastructure Pvt. Ltd.…

## 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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