Adjudicating Authority being the appointing authority of IRP/RP was well within its jurisdiction to pass an order for removal of a Resolution Professional(RP) particularly in a situation where the RP has not taken any steps to convene a meeting of CoC for the purposes of removal of RP – Srigopal Choudary RP of Shree Ram Urban Infrastructure Ltd. Vs. SREI Equipment Finance Ltd. – NCLAT New Delhi

NCLAT held that the provision of Section 27 of the Code contemplates that the replacement of the Resolution Professional can be done by the CoC alone. But if the ingredients of Section 27 of the Code cannot be met i.e. in the event, the RP is not convening the meeting of CoC, which in turn has to decide the replacement of the RP himself, the Adjudicating Authority, in order not to delay the CIRP proceedings, on an application under Rule 11 of the NCLT Rules, 2016 has rightly invoked its inherent jurisdiction and passed the impugned order.

Adjudicating Authority being the appointing authority of IRP/RP was well within its jurisdiction to pass an order for removal of a Resolution Professional(RP) particularly in a situation where the RP has not taken any steps to convene a meeting of CoC for the purposes of removal of RP – Srigopal Choudary RP of Shree Ram Urban Infrastructure Ltd. Vs. SREI Equipment Finance Ltd. – NCLAT New Delhi Read Post »