# In the matter of Siva Ram Yarns Private Limited IA No. 45-2019 in TCP (IB) No. 22-9-AMR-2019 {CP (IB) No. 173-9-HDB-2018}

> NCLT judgment dated 2019-11-15. Citation: TCN-2019-NCLT-00580. The case involves an application filed by the Operational Creditor, VST Weaves India Private…

- **Court:** NCLT
- **Order date:** 15 Nov 2019
- **Citation:** TCN-2019-NCLT-00580
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/siva-ram-yarns-private-limited-ia-no-45-2019-in-tcp-ib-no-22-9-amr-2019-cp-ib-no-a66c10f0

## Summary

### Background

The case involves an application filed by the Operational Creditor, VST Weaves India Private Limited, under the Insolvency and Bankruptcy Code, 2016, seeking to replace the initially appointed Interim Resolution Professional (IRP), Shri S. Muthu Raju, with Shri A. R. Ramasubramania Raja. The Corporate Debtor is Shivaram Yarns Private Limited. The initial petition, CP (IB) No. 173/9/HDB/2018, was admitted on 2019-10-29, and Shri S. Muthu Raju was appointed as IRP.

## Facts

VST Weaves India Private Limited, the Operational Creditor, filed an application to replace the initially appointed Interim Resolution Professional (IRP), Shri S. Muthu Raju, with Shri A. R. Ramasubramania Raja. The initial petition, CP (IB) No. 173/9/HDB/2018, against Shivaram Yarns Private Limited, the Corporate Debtor, was admitted on 2019-10-29, and Shri S. Muthu Raju was appointed as IRP. Shri S. Muthu Raju expressed his inability to act as IRP via a letter dated 2019-06-12, leading the Operational Creditor to propose Shri A. R. Ramasubramania Raja as the replacement. Shri A. R. Ramasubramania Raja provided his consent in Form No. 2 on 2019-09-12. The court considered these facts and circumstances before allowing the application for replacement.

## Issues and analysis

### Issue 1: Whether the application to replace the initially appointed Interim Resolution Professional (IRP) …

**Ratio:** The legal principle applied is that the court has the discretion to replace an IRP if

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**Reasoning:** The court reasoned that since the initially appointed IRP, Shri S. Muthu Raju, expressed

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**Interpretation:** The interpretation involves understanding the provisions of the Insolvency and

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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:** Janab Mohammed…
- **Appellants:** VST Weaves India…
- **Respondents:** Shivaram Yarns…; Shivaram Yarns…

## Timeline

- **2018-01-01 — Company Petiti…**: CP(IB) No. 173/9/HDB/2018 filed…
- **2019-06-12 — Initial IRP's…**: Shri S. Muthu Raju, the initially appointed IRP, submitted a letter stating his inability…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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