IBC Laws - Appointment of Resolution Professional in case of simultaneous CIRPs against the Principal Borrower as well as the Corporate Debtor - State Bank of India Vs. M/s. Athena Energy Ventures Pvt. Ltd.

Appointment of Resolution Professional in case of simultaneous CIRPs against the Principal Borrower as well as the Corporate Debtor – State Bank of India Vs. M/s. Athena Energy Ventures Pvt. Ltd. – NCLAT New Delhi

July 6, 2021

By the Impugned Order dated 24.11.2020, NCLAT had held that there could be simultaneous CIRPs against the Principal Borrower as well as the Corporate Debtor and also held that the Adjudicating Authority is requested to appoint the same IRP/RP as has been appointed in the CIRP proceeding against M/s. Athena Chattisgarh Power Ltd. (Principal Borrower). As per the above orders, Adjudicating Authority admitted application and appointed Mr. C. Bala Mouli IRP/RP, as Mr. C. Bala Mouli was appearing as Resolution Professional for the Principal Borrower-Athena Chattisgarh Power Ltd. It is stated that Mr. C Bala Mouli filed application that now he has attained the age of 70 years and is doubtful if he can continue to act as IRP. M/s. Athena Chattisgarh Power Ltd. (Principal Borrower) is now in Liquidation and that one Mr. Kumar Raajan has been appointed as a Liquidator as per CoC Meeting dated 24.12.2020. NCLAT held that when it is stated that Principal Borrower is under Liquidation and the CIRP against the Corporate Guarantor Respondent Athena Energy Ventures Pvt. Ltd. is pending, it plainly requires that the Resolution Professional who is working as a Liquidator of the Principal Borrower should be appointed as Resolution Professional for the Corporate Guarantor. There was no harm even if the Adjudicating Authority had passed the orders. However, as it is stated that the orders are not still passed. It would be appropriate that the Adjudicating Authority immediately pass necessary orders.

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Chapter	Topic	Content
CH-2: General & Definitions
		Short Note on Insolvency and Bankruptcy Code, 2016 (IBC, 2016)
		Dispute and Existence of a Dispute
		Operational Debt and Operational Creditor
		Persons who may initiate Corporate Insolvency Resolution Process(CIRP)
		Analysis provisions of Limitation Act, 1963 with respect to Insolvency and Bankruptcy Code, 2016
CH-3: CIRP
	Topic-1 : CIRP Application & Withdrawal
		Analysis of Minimum amount of default under Section 4 of IBC
		Procedure of filing application by Financial Creditor before NCLT under Section 7 of the IBC
		Procedure of filing application by Operational Creditor before NCLT under Section 8 & 9 of the IBC
		Initiation of CIRP by corporate applicant under Section 10 of the IBC
		Analysis of withdrawal of CIRP proceeding pursuant to settlement under Section 12A of Insolvency and Bankruptcy Code, 2016 (IBC)
	Topic-2 : Declaration of moratorium and public announcement
		Declaration of moratorium and public announcement [Section 13, 14 & 15 of the IBC]
		All about the Moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 including judicial pronouncements
	Topic-3 : Appointment and tenure of IRP & RP
		Appointment and tenure of Interim Resolution Professional and Resolution Professional [Section 16, 22 & 27 of the IBC]
		Role of an Interim Resolution Professional and Resolution Professional
	Topic-4 : Management of affairs by IRP
	Topic-5 : Receive and collate all the claims submitted by creditors
	Topic-6 : Committee of creditors and meetings
		Constitution of Committee of Creditors under Section 21 of IBC
		Role of Committee of Creditors & It’s Commercial Wisdom
		Analysis of provisions on Authorised Representative under IBC
		Meetings & Voting of the Committee of Creditors under Section 24 of the IBC
	Topic-7 : RP to conduct the CIRP and manage the operations
		Resolution Professional to conduct the CIRP and manage the operations of the Corporate Debtor
		Insolvency Resolution Process Costs & Essential supplies
		To identify preferential transactions under Sec. 43 of the Code in any CIRP, step to be taken by a Resolution Professional
	Topic-8 : CIRP and Resolution Plan
		Information Memorandum, Expression of Interest, Request for Resolution Plans & Resolution Plans
		Role of the prospective resolution applicant
		Persons not eligible to be Resolution Applicant [Sec. 29A of IBC]
		Submission and approval of the Resolution Plan
		Liability for prior offences under Section 32A of the IBC
CH-4 : Liquidation Process
	Topic-1 : Initiation of Liquidation
	Topic-2 : Appointment & Remuneration of Liquidator
		Appointment & Remuneration of Liquidator under Sec. 34 of IBC
		Powers and duties of Liquidator under Sec. 35, 37 of IBC
	Topic-3: Liquidation Estate
	Topic-4: Public announcement, Preliminary report, Early dissolution and Progress reports under Liquidation
	Topic-5: Claims under Liquidation
	Topic-6: Preferential, undervalued and Extortionate Credit Transactions
		Preferential, Undervalued and Extortionate Credit Transactions under Sec. 43, 44, 45, 46, 47, 48, 49, 50, 51 of IBC
		To identify preferential transactions under Sec. 43 of the Code in any CIRP, step to be taken by a Resolution Professional
	Topic-7: Secured Creditor in Liquidation Proceedings
	Topic-8: Realisation of Assets in Liquidation Proceedings
	Topic-9: Proceeds of Liquidation and Distribution of Proceeds
CH-5 : Personal Guarantor
		Chapter VIII Indemnity and Guarantee of Indian Contract Act, 1872
		All about Personal Guarantor under IBC Part-I
		All about Personal Guarantor under IBC Part-II
		Insolvency Resolution Process Regulation
		Bankruptcy Process for PG Regulation
		IRP Application to AA Rules
		Bankruptcy Process Application to AA Rules

Appointment of Resolution Professional in case of simultaneous CIRPs against the Principal Borrower as well as the Corporate Debtor – State Bank of India Vs. M/s. Athena Energy Ventures Pvt. Ltd. – NCLAT New Delhi

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