# 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-01321. 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-01321
- **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-e6497cc5

## 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 (RP), Mr. Subrata Maity. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 03.09.2019. The Committee of Creditors (CoC) resolved to initiate liquidation, and an application for approval of liquidation was filed. An interim order was passed by the Insolvency and Bankruptcy Board of India (IBBI) against Mr. Subrata Maity, suspending his registration as an Insolvency Professional.

## Facts

Bank of Maharashtra, as the sole financial creditor, filed an application to replace the existing Resolution Professional (RP), Mr. Subrata Maity, for Automotive Coaches and Components Limited. The Corporate Debtor had been admitted into Corporate Insolvency Resolution Process (CIRP) on 03.09.2019. The Committee of Creditors (CoC) had resolved to initiate liquidation. The IBBI passed an interim order on 09.05.2022, suspending Mr. Subrata Maity's registration as an Insolvency Professional due to serious allegations and an ongoing CBI investigation. The IBBI's interim order was set to lapse after 90 days. The applicant argued that a new RP was needed to continue the CIRP process effectively. The court noted that the interim order would lapse on 08.08.2022. The

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## Issues and analysis

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

**Ratio:** The ratio is based on the principle that an Insolvency Professional whose registration

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**Reasoning:** The court reasoned that the IBBI's interim order raised serious questions about Mr.

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**Interpretation:** The interpretation involves understanding the powers of the IBBI to regulate

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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:** 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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