Suspended Board of Directors under the Code, 2016 do not have power to replace a Resolution Professional – Anil Kumar Ojha Vs. Chandramouli Ramasubramaniam RP of SLO Industrial Ltd. & Anr. – NCLAT Chennai
NCLAT holds that the Adjudicating Authority is of the considered opinion that the Committee of Creditors is entitled and also empowered to change the Resolution Professional in CIRP and that too, with a Majority of 66 % votes. In reality, the Suspended Board of Director under the Code, 2016 is not enjoined with the power to displace the existing Resolution Professional and to seek for a replacement of another Resolution Professional, being appointed in his place. Added further, an Adjudicating Authority is to adhere to the procedural formalities which are mentioned in the relevant Sections of the Code, depending on the controversies involved, in the subject matter.