# In the matter of Sixth Dimensions Project Solution Limited MA No 1626 -2018 in CP No. 587-I&BP-2018

> NCLT judgment dated 2019-03-13. Citation: TCN-2019-NCLT-04451. The case involves an application to change the Interim Resolution Professional (IRP) in the…

- **Court:** NCLT
- **Order date:** 13 Mar 2019
- **Citation:** TCN-2019-NCLT-04451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sixth-dimensions-project-solution-limited-ma-no-1626-2018-in-cp-no-587-ibp-2018-0d22bb41

## Summary

### Background

The case involves an application to change the Interim Resolution Professional (IRP) in the Corporate Insolvency Resolution Process (CIRP) of Sixth Dimensions Project Solution Limited. The Committee of Creditors (COC), primarily Axis Bank, sought to replace the existing IRP, Mr. S. Gopalakrishnan, with Mr. Santanu T Ray. The application was filed due to alleged failures by the IRP in performing his duties, including improper verification of claims, failure to collate information, and issuing detrimental instructions regarding rent receivables. The Adjudicating Authority (NCLT) noted serious fraudulent activities by the Directors/Promoters of the Corporate Debtor and its group companies, which are under CBI investigation.

## Facts

Ms. Rama Subramaniam, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Sixth Dimensions Project Solution Limited. The Committee of Creditors (COC), primarily Axis Bank, sought to replace the Interim Resolution Professional (IRP), Mr. S. Gopalakrishnan, with Mr. Santanu T Ray. The COC alleged that the IRP failed to properly verify claims, collate information, and protect the Corporate Debtor's assets. Specifically, the IRP was accused of accepting claims with interest, failing to locate financial creditor information in the Corporate Debtor's balance sheet, and issuing a letter to a licensee instructing them to stop paying rent to the Corporate Debtor. The Adjudicating Authority (NCLT) observed serious fraudulent activities by

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors (COC) has the absolute power to change the Interim Resolution …

**Ratio:** The COC does not have absolute power to change the IRP/RP at their whims and fancies

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**Reasoning:** The Adjudicating Authority considered the contentions on both sides and expressed an

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**Interpretation:** Section 22 (3)(b) of the Insolvency and Bankruptcy Code (IBC) makes it

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**Application:** In this case, the COC's decision to change the IRP was not based on valid

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Rama Subra…
- **Respondents:** Sixth Dimensions…; M/s Sixth…

## Timeline

- **2018-10-03 — COC Meet…**: The Committee of Creditors (COC) resolved to appoint Mr. Santanu T Ray as Resolution…
- **2018-11-15 — Communication Regarding…**: A small communication dated 15th November 2018 is attached regarding the claims of the…

## 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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