# In the matter of Agh Wires Private Limited

> NCLT judgment dated 2023-11-21. Citation: TCN-2023-NCLT-00676. The Interlocutory Application No.5783/ND/2023 was filed in the Company Petition No.…

- **Court:** NCLT
- **Order date:** 21 Nov 2023
- **Citation:** TCN-2023-NCLT-00676
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/agh-wires-private-limited-56850fcf

## Summary

### Background

The Interlocutory Application No.5783/ND/2023 was filed in the Company Petition No. (IB)-2926/ND/2019 by Mr. Varun Sethi, the Interim Resolution Professional (IRP) of M/s. AGH Wires Private Limited, seeking to be relieved from his role as IRP due to personal commitments and his inability to continue the assignment. The Adjudicating Authority had initiated the Corporate Insolvency Resolution Process (CIRP) of M/s AGH Wires Private Limited and appointed Mr. Varun Sethi as the IRP.

## Facts

M/s. Elantas Beck India Limited initiated a Corporate Insolvency Resolution Process (CIRP) against M/s. AGH Wires Private Limited under the Insolvency and Bankruptcy Code, 2016. Mr. Varun Sethi was appointed as the Interim Resolution Professional (IRP). Mr. Sethi filed an interlocutory application (No.5783/ND/2023) seeking to be relieved of his duties as IRP due to personal reasons, specifically his temporary relocation from Delhi/NCR to Pune and the need to care for his ailing mother. The Adjudicating Authority, after considering the application, appointed Mr. Manish Kumar Aggarwal as the new IRP for the period July 1 to December 31, 2023. The Operational Creditor, M/s Elantas Beck India Limited, was directed to deposit Rs. 2 lacs to cover the expenses of the new IRP.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the application of Mr. Varun Sethi to be relieved …

**Ratio:** An IRP can be relieved of their duties if they demonstrate sufficient cause, such as

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**Reasoning:** The Adjudicating Authority considered Mr. Sethi's reasons for seeking replacement,

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**Interpretation:** This demonstrates the court's willingness to accommodate genuine personal

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**Application:** The ratio was applied to the specific facts of Mr. Sethi's situation, where his

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## Parties

- **Judges:** MANNI SANKARIAH…; ATUL CHAT…
- **Appellants:** Varun S…
- **Respondents:** AGH Wires Private…; M/S. AGH WIRES…

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition No.…
- **2023-10-16 — CIRP Initiated and IRP…**: The Adjudicating Authority initiated Corporate Insolvency Resolution Process of M/s AGH…

## 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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