# In the matter of Sparkspell Homes Private Limited IA (IB) No.357-ALD-2020 in CP (IB) No.76-ALD-2019

> NCLT judgment dated 2022-04-20. Citation: TCN-2022-NCLT-03188. The case involves an application (IA No.357/ALD/2020) within a corporate insolvency resolution…

- **Court:** NCLT
- **Order date:** 20 Apr 2022
- **Citation:** TCN-2022-NCLT-03188
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sparkspell-homes-private-limited-ia-ib-no357-ald-2020-in-cp-ib-no76-ald-2019-bdfe569a

## Summary

### Background

The case involves an application (IA No.357/ALD/2020) within a corporate insolvency resolution process (CIRP) under CP (IB) No.76/ALD/2019. The Committee of Creditors (CoC) of Sparkspell Homes Private Limited sought the replacement of the existing Resolution Professional (RP). The Corporate Debtor was admitted into CIRP on 2019-08-28, and Mr. Mohit Maheshwari was appointed as the initial IRP, later replaced by Mr. Sudhir Shukla on 2019-10-23. The CoC filed an application for replacement of the RP, alleging that the RP was not performing his duties, withheld information, and acted in a biased manner. The CoC also requested the RP to convene a meeting to consider liquidation of the Corporate Debtor as the CIRP period was expiring.

## Facts

The Corporate Debtor, Sparkspell Homes Private Limited, was admitted into CIRP on 2019-08-28. Mr. Mohit Maheshwari was initially appointed as the IRP, and later replaced by Mr. Sudhir Shukla on 2019-10-23. The Committee of Creditors (CoC) filed an application seeking the replacement of the current Resolution Professional (RP), Mr. Anuj Kumar Tiwari. The CoC alleged that the RP was not performing his duties, withheld information, and acted in a biased manner. The CoC also requested the RP to convene a meeting to consider liquidation of the Corporate Debtor as the CIRP period was expiring on 2020-12-21. The RP conducted the 8th CoC meeting on 2020-10-29. The CoC claimed the RP failed to record proceedings of the 9th CoC meeting and circulated minutes lacking key aspects.

…

## Issues and analysis

### Issue 1: Whether the application for replacement of the Resolution Professional (RP) by the Committee of …

**Ratio:** The repeated replacement of the RP is not the intent of the IBC. If there is misconduct

…

**Reasoning:** The court found that this was the third RP appointed and that the regular churning of the

…

**Interpretation:** The IBC aims to ensure a stable and efficient CIRP. Frequent changes in RP can

…

**Application:** In this case, the court found that the CoC's application for replacement was

…

## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Appellants:** Deepak Gupt…
- **Respondents:** Sparkspell Homes…; Anuj Kumar…

## Timeline

- **2019-08-28 — Admission in…**: Sparkspell Homes Private…
- **2019-08-28 — Appointment…**: Mr. Mohit Maheshwari was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sparkspell-homes-private-limited-ia-ib-no357-ald-2020-in-cp-ib-no76-ald-2019-bdfe569a