# In the matter of Selathaar Tanning Industry Pvt. Ltd. IA(IBC)-414-CHE-2021 in IBA-83-2020

> NCLT judgment dated 2022-01-06. Citation: TCN-2022-NCLT-04529. The case involves an application filed by the Interim Resolution Professional (IRP) seeking…

- **Court:** NCLT
- **Order date:** 6 Jan 2022
- **Citation:** TCN-2022-NCLT-04529
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/selathaar-tanning-industry-pvt-ltd-iaibc-414-che-2021-in-iba-83-2020-02aff1b4

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) seeking relief for withdrawing his appointment due to non-cooperation from the Operational Creditor and non-compliance with the Tribunal's order. The IRP also requested action against the Operational Creditor for disobeying the Tribunal's order and compensation for the time spent processing the case.

## Facts

M Murugesan, the Interim Resolution Professional (IRP) of M/s Selathaar Tanning Industries Pvt Ltd, filed an application (IA(IBC)/414/CHE/2021 in IBA/83/2020) seeking to withdraw his appointment due to the Operational Creditor, Jamallur Razack Sakkira Bannu & Others, not cooperating and not complying with the Tribunal's orders. The IRP also sought action against the Operational Creditor for disobedience and compensation for his time spent on the case. The Operational Creditor did not respond to notices, oral communications, or messages from the IRP, and their counsel did not appear before the Tribunal. This caused financial and mental difficulties for the IRP, including unpaid expenses. The Tribunal observed the non-cooperation and imposed costs on the Operational

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## Issues and analysis

### Issue 1: Whether the IRP should be allowed to withdraw his appointment due to the Operational Creditor's …

**Ratio:** The principle of ensuring effective and cooperative insolvency resolution processes is

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**Reasoning:** The court reasoned that the Operational Creditor's failure to respond to notices and

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**Interpretation:** This interprets the legal framework to require active participation and

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**Application:** Given the Operational Creditor's consistent non-cooperation, the principle

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## Parties

- **Judges:** S. Ramath…; B. Anil…
- **Appellants:** M.Murug…
- **Respondents:** M/s Selathaar…; Jamallur Razack…
- **Advocates:** S. Sathiyanarayana…

## Timeline

- **2022-01-06 — Hearing…**: Hearing held on 06-01-2022 at 10:30…
- **2022-01-20 — Complianc…**: Matter listed for…

## 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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