# In the matter of JSM Devcons India Pvt. Ltd. TP 230 of 2019

> NCLT judgment dated 2023-03-24. Citation: TCN-2023-NCLT-04062. The case pertains to TP 230 of 2019 [CP(IB) 192 of 2017] under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 24 Mar 2023
- **Citation:** TCN-2023-NCLT-04062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jsm-devcons-india-pvt-ltd-tp-230-of-2019-6dedf8ab

## Summary

### Background

The case pertains to TP 230 of 2019 [CP(IB) 192 of 2017] under Section 7 of the Insolvency and Bankruptcy Code (IBC). Daimler Financial Services Pvt Ltd filed an application against JSM Devcons India Pvt Ltd. The Resolution Professional (RP) has not appeared despite a previous order dated 19.01.2023, which the Adjudicating Authority finds appalling. The court is considering the replacement of the RP and the matter is referred to IBBI.

## Facts

Daimler Financial Services Pvt Ltd initiated proceedings against JSM Devcons India Pvt Ltd under Section 7 of the IBC. The Resolution Professional (RP) failed to appear before the Adjudicating Authority despite a prior order dated 19.01.2023. The counsel for the Financial Creditors (AR) alleged that the RP absconded and embezzled the Earnest Money Deposit (EMD) submitted by the Proposed Resolution Applicant. The Committee of Creditors (CoC) is at liberty to pass a resolution regarding the replacement of the RP. The court noted the peculiar situation where the IP suggested by the CoC could be appointed as RP, but he is not discharging his function and is also not represented before the Adjudicating Authority. The court deemed it appropriate to refer the matter to the

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## Issues and analysis

### Issue 1: Whether the Resolution Professional's (RP) non-appearance and alleged misconduct warrant …

**Ratio:** The Adjudicating Authority has the power and duty to ensure the proper conduct of

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**Reasoning:** The court noted the RP's failure to appear despite a previous order and the serious

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**Interpretation:** The legal issue involves interpreting the powers and responsibilities of the

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**Application:** Given the RP's non-appearance and the allegations of embezzlement, the court

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## Parties

- **Judges:** Sh. Ashok Kumar…; Ajai Das Me…
- **Appellants:** Daimler Financial…
- **Respondents:** JSM Devcons India…

## Timeline

- **2023-01-19 — Previous…**: Adjudicating Authority passed an…
- **2023-03-24 — Order Del…**: Order delivered referring the matter to…

## 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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