# In the matter of Automotive Coaches & Components Pvt. Ltd. IA (IBC)-872(CHE)-2022 in IBA-660-2019

> NCLT judgment dated 2022-08-22. Citation: TCN-2022-NCLT-01317. The case involves an application filed by Bank of Maharashtra, the sole financial creditor of…

- **Court:** NCLT
- **Order date:** 22 Aug 2022
- **Citation:** TCN-2022-NCLT-01317
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/automotive-coaches-components-pvt-ltd-ia-ibc-872che-2022-in-iba-660-2019-6bdab40f

## Summary

### Background

The case involves an application filed by Bank of Maharashtra, the sole financial creditor of Automotive Coaches and Components Limited, seeking the replacement of the existing Resolution Professional, Mr. Subrata Maity, with Mr. Avil Jerome Menezes as the Liquidator of the Corporate Debtor. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 03.09.2019. An interim order was passed by the Insolvency and Bankruptcy Board of India (IBBI) against Mr. Subrata Monindranath Maity on 09.05.2022, suspending his registration as an Insolvency Professional.

## Facts

Bank of Maharashtra, the sole financial creditor of Automotive Coaches & Components Ltd, filed an application to replace the existing Resolution Professional, Mr. Subrata Maity, with Mr. Avil Jerome Menezes as the Liquidator. Automotive Coaches & Components Ltd was admitted into Corporate Insolvency Resolution Process (CIRP) on 03.09.2019. The Committee of Creditors had resolved to initiate liquidation. The IBBI passed an interim order on 09.05.2022, suspending Mr. Subrata Monindranath Maity due to serious allegations and an ongoing CBI investigation. The Learned Counsel for the Applicant relied on the IBBI's interim order to justify the replacement of Mr. Maity. The preparation of the stakeholders list was still pending. The court observed that the IBBI's

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## Issues and analysis

### Issue 1: Whether the existing Resolution Professional, Mr. Subrata Maity, should be replaced given the …

**Ratio:** The IBBI's interim order suspending an Insolvency Professional raises serious questions

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**Reasoning:** The court reasoned that the interim order passed by the IBBI against Mr. Subrata M. Maity

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**Interpretation:** The interpretation of the IBBI's order is that it signifies a lack of

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**Application:** Given the IBBI's suspension of Mr. Maity, the court applied the ratio by

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## Parties

- **Judges:** BACHU VENKAT…; Shri. Samee…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** AUTOMOTIVE…; M/s Automotive…

## Timeline

- **2019-09-03 — Admission in…**: Automotive Coaches and Components Limited was admitted into Corporate Insolvency…
- **2019-11-27 — Appointment of…**: Mr. Subrata M. Maity was appointed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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