# In the matter of Sintex Industries Limited IA 392 & 424 of 2021 in CP (IB) No. 848 of 2019

> NCLT judgment dated 2021-10-05. Citation: TCN-2021-NCLT-00853. The case involves an application (IA 424 of 2021) by the Committee of Creditors (COC) seeking…

- **Court:** NCLT
- **Order date:** 5 Oct 2021
- **Citation:** TCN-2021-NCLT-00853
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sintex-industries-limited-ia-392-424-of-2021-in-cp-ib-no-848-of-2019-00dba9f5

## Summary

### Background

The case involves an application (IA 424 of 2021) by the Committee of Creditors (COC) seeking the replacement of the Interim Resolution Professional (IRP) for Sintex Industries Ltd, which is undergoing Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was admitted into CIRP on 06.04.2021. The COC, in its first meeting on 10.05.2021, resolved to appoint Mr. Shailendra Ajmera as Resolution Professional with a majority voting share of 90.71%. The applicant was authorized with 99.94% to file this application. The suspended management of the Corporate Debtor alleged that the proposed Resolution Professional has a conflict of interest. Another application (IA 392 of 2021) was filed by the suspended management supporting the continuation of the existing IRP.

## Facts

Sintex Industries Ltd. is undergoing CIRP, initiated on 06.04.2021. The COC, holding a 90.71% voting share, resolved to replace the existing IRP with Mr. Shailendra Ajmera. The COC authorized the applicant with 99.94% to file the application for replacement. The suspended management of Sintex Industries Ltd. opposed the replacement, alleging a conflict of interest for the proposed RP. The suspended management also filed IA 392 of 2021 to support the continuation of the current IRP. The existing IRP stated they had conducted CIRP for 170 days and attracted 16 expressions of interest. The original financial creditor, Invesco Asset Management (India) Private Limited, had proposed the IRP. The CIRP timeline of 180 days is approaching.

## Issues and analysis

### Issue 1: Whether the Committee of Creditors (COC) can replace the Interim Resolution Professional (IRP) …

**Ratio:** The COC has the power to propose a change of the Interim Resolution Professional, even in

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**Reasoning:** The court relied on the Hon'ble NCLAT's decision in Naveen Kumar Jain Vs. Committee of

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**Interpretation:** The legal issue pertains to the COC's authority to replace the IRP. The

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**Application:** In this case, the COC, with a majority voting share, resolved to replace the

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** COC Sintex…
- **Respondents:** Sintex Industries…; Pinakin S. Shah…
- **Advocates:** Rashesh San…; Jaimin…; +2 more

## Timeline

- **2021-04-06 — CIRP Init…**: Corporate Debtor…
- **2021-05-10 — COC Meet…**: Committee of Creditors resolved to appoint Mr. Shailendra Ajmera as Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 22(3) — Appointment of resolution professional](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-22)

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