# In the matter of Avail Holding Limited

> NCLT judgment dated 2024-05-06. Citation: TCN-2024-NCLT-01422. The case involves an application (IA-1835/2024) regarding the replacement of the Interim…

- **Court:** NCLT
- **Order date:** 6 May 2024
- **Citation:** TCN-2024-NCLT-01422
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avail-holding-limited-2755ac29

## Summary

### Background

The case involves an application (IA-1835/2024) regarding the replacement of the Interim Resolution Professional (IRP) in the matter of M/s. VA Realcon Pvt Ltd. versus M/s. Avail Holding Ltd. The Committee of Creditors (CoC) had passed a resolution on 2024-03-09 to replace the IRP, Mr. Parveen Bansal, with Mr. Satyendrea Sharma. The IRP requested voting on the resolution, but it was rejected by the CoC with a 100% vote share. The Chairman also informed the members that Utsav Securities, a financial creditor of the Corporate Debtor, proposed Mr. Satyendra Sharma as an insolvency professional.

## Facts

M/s. VA Realcon Pvt Ltd. filed a case against M/s. Avail Holding Ltd. under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Committee of Creditors (CoC) passed a resolution on 2024-03-09 to replace the Interim Resolution Professional (IRP), Mr. Parveen Bansal, with Mr. Satyendrea Sharma. The IRP requested voting on the resolution. The resolution was rejected by the CoC with a 100% vote share. Utsav Securities, a financial creditor of the Corporate Debtor (Avail Holding Private Limited), proposed Mr. Satyendra Sharma as an insolvency professional. The Chairman apprised the members of this proposal. The IRP raised the issue of non-payment of fees. The CoC's counsel stated that the IRP's fees would be paid within four weeks. The Adjudicating Authority

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## Issues and analysis

### Issue 1: Whether the resolution passed by the Committee of Creditors (CoC) to replace the Interim Resolution …

**Ratio:** The Committee of Creditors has the authority to resolve to replace the IRP under Section

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**Reasoning:** The resolution was rejected by the CoC with a 100% vote share, indicating a lack of

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**Interpretation:** Section 22(3) of the IBC, 2016, grants the CoC the power to replace the IRP.

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**Application:** In this case, the resolution was rejected by the CoC, rendering it invalid.

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## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Appellants:** M/s. VA Realcon…
- **Respondents:** Avail Holding…; M/s. Avail…

## Timeline

- **2024-03-09 — CoC Resol…**: The Committee of Creditors (CoC) passed a resolution to replace the Interim Resolution…
- **2024-02-28 — Proposal for RP…**: Utsav Securities proposed Mr. Satyendra Sharma…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 23(2) — Resolution professional to conduct corporate…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-23)

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