# In the matter of Modern Syntex (India) Ltd.

> NCLT judgment dated 2023-09-27. Citation: TCN-2023-NCLT-01449. The application IA No. 510/JPR/2023 was filed under Section 27 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Sept 2023
- **Citation:** TCN-2023-NCLT-01449
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/modern-syntex-india-ltd-7df7a56d

## Summary

### Background

The application IA No. 510/JPR/2023 was filed under Section 27 of the Insolvency & Bankruptcy Code (IBC), 2016, read with Rule 11 of NCLT Rules, 2016, seeking the replacement of the existing Resolution Professional (RP), Mr. Partha Sarathy Sarkar, and the appointment of Mr. Ankit Goel as the new RP for M/s Modern Syntex (India) Limited ('Corporate Debtor'). The main petition was filed under Section 7 of the Code by the Administrator of Specified Undertaking of Unit Trust of India and UTI Trustee Company Pvt. Ltd. ('Financial Creditors') seeking CIRP of the Corporate Debtor. The Adjudicating Authority initiated the CIRP of the Corporate Debtor on 28.03.2022 and appointed Mr. Partha Sarathy Sarkar as the IRP.

## Facts

The Administrator of Specified Undertaking of Unit Trust of India and UTI Trustee Company Pvt. Ltd. filed a petition under Section 7 of the IBC seeking CIRP of M/s Modern Syntex (India) Ltd. The Adjudicating Authority initiated CIRP on 28.03.2022 and appointed Mr. Partha Sarathy Sarkar as the IRP. Mr. Sarkar was later confirmed as the RP. The CoC requested the RP to reduce his fees, which he declined. The CoC then decided to replace Mr. Sarkar with Mr. Ankit Goel in a meeting held on 28.08.2023. Mr. Goel provided his consent to act as the RP. The CoC approved the replacement with 100% voting. The RP objected to this replacement. The application IA No. 510/JPR/2023 was filed to formalize this replacement.

## Issues and analysis

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

**Ratio:** Section 27 of the IBC grants the CoC the power to replace the RP with a requisite

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**Reasoning:** The court stated that the law is clear and the CoC has ample powers to replace the RP of

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**Interpretation:** Section 27 of the IBC is interpreted to provide the CoC with significant

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**Application:** The CoC, having approved the replacement of the RP with 100% voting, has acted

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** The Administrator…
- **Respondents:** M/S MODERN SYNTEX…
- **Advocates:** Vishal…

## Timeline

- **2018-01-01 — In IB No. 39(…**: Original IB application…
- **2022-03-28 — CIRP Init…**: Adjudicating Authority initiated the CIRP of the Corporate Debtor and appointed Mr.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 27 — Replacement of resolution professional by…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-27)

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