# In the matter of Classic Build Projects Pvt. Ltd. CP(IB) 59 of 2020

> NCLT judgment dated 2022-08-03. Citation: TCN-2022-NCLT-01475. The case pertains to proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC).…

- **Court:** NCLT
- **Order date:** 3 Aug 2022
- **Citation:** TCN-2022-NCLT-01475
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/classic-build-projects-pvt-ltd-cpib-59-of-2020-aa587f2d

## Summary

### Background

The case pertains to proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) by order dated July 20, 2022. An Interim Resolution Professional (IRP), Mr. Hiten Mukundbhai Parikh, was appointed. However, the IRP submitted a letter on July 29, 2022, stating a conflict of interest with the Corporate Debtor and unwillingness to continue as IRP.

## Facts

Shine Plastics, through its proprietor Mr. Shaileshkumar Jasubhai Shah, filed an application under Section 9 of the IBC against Classic Build Projects Pvt Ltd. The Corporate Debtor, Classic Build Projects Pvt Ltd, was admitted into CIRP on July 20, 2022. Mr. Hiten Mukundbhai Parikh was appointed as the IRP. However, on July 29, 2022, Mr. Parikh submitted a letter stating a conflict of interest with the Corporate Debtor and his unwillingness to continue as IRP. The Adjudicating Authority accepted this and appointed Mr. Gaurav Inderchand Nahta as the new IRP.

## Issues and analysis

### Issue 1: Whether the initially appointed IRP can be discharged …

**Ratio:** An IRP can be discharged from their duties if they declare a conflict of interest that

…

**Reasoning:** The Adjudicating Authority accepted the IRP's declaration of a conflict of interest as a

…

**Interpretation:** The declaration of a conflict of interest by an IRP is a sufficient ground for

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**Application:** Mr. Hiten Mukundbhai Parikh declared a conflict of interest. Based on this

…

## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Shine Plastics…
- **Respondents:** Classic Build…; Jasubhai…

## Timeline

- **2022-07-20 — CIRP Admi…**: The Corporate Debtor, Classic Build…
- **2022-07-20 — IRP Appoi…**: Mr. Hiten Mukundbhai Parikh was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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