# In the matter of M K Overseas Pvt. Ltd. I.A. (IB) No. 3757 of 2022 in C.P. (IB) No. 1731 of 2019

> NCLT judgment dated 2022-10-14. Citation: TCN-2022-NCLT-00750. Mayoga Investment Ltd., a financial creditor, initiated Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 14 Oct 2022
- **Citation:** TCN-2022-NCLT-00750
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/m-k-overseas-pvt-ltd-ia-ib-no-3757-of-2022-in-cp-ib-no-1731-of-2019-621dc12a

## Summary

### Background

Mayoga Investment Ltd., a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M.K. Overseas Pvt. Ltd., the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority initiated CIRP on 2019-09-19 and appointed Mr. Suresh Kumar Jain as the Interim Resolution Professional (IRP), later confirmed as Resolution Professional (RP) on 2019-10-23. Venus India Asset Finance Pvt. Ltd., representing the Committee of Creditors (CoC), filed an application under section 22(3) of IBC for the appointment of Mr. Sapan Mohan Garg as the new RP, citing a resolution passed by the CoC on 2022-08-01. This application was contested by the existing RP and other creditors, primarily Drip Capital Inc., who argued that

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## Facts

Mayoga Investment Ltd. initiated CIRP against M.K. Overseas Pvt. Ltd. on 2019-09-19. Suresh Kumar Jain was appointed as IRP and later confirmed as RP. Venus India Asset Finance Pvt. Ltd., representing the CoC, filed an application to replace Jain with Sapan Mohan Garg, based on a CoC resolution from 2022-08-01. The CoC held 74.55% voting share. The voting for the RP replacement was conducted on 2022-07-29, with results declared on 2022-08-01, showing 76.69% approval. The existing RP, Jain, contested the replacement, citing his performance and the advanced stage of CIRP. Drip Capital Inc., a financial creditor, opposed the replacement, alleging it was intended to derail the resolution process. Bank of Baroda (BOB) allegedly sought the RP's replacement due to his failure

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors (CoC) has the authority to replace the Resolution Professional …

**Ratio:** Section 27 of the Insolvency and Bankruptcy Code (IBC) allows the CoC to replace the RP

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**Reasoning:** The court reasoned that the IBC does not envisage any role or decision-making authority

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**Interpretation:** Section 27 grants the CoC the power to replace the RP, but this power is not

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**Application:** In this case, the CoC sought to replace the RP after the resolution plan had

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Mayoga Investment…
- **Respondents:** M.K.Overseas Pvt.…; Suresh Kuma…
- **Advocates:** P. Na…; Brijesh Kumar…; +4 more

## Timeline

- **2019-09-19 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2019-10-23 — RP Confir…**: Suresh Kumar Jain confirmed as…

## 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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