State Bank Of India Vs. M/S Metenere Ltd. – SC

Supreme Court held that the order passed by NCLAT in the matter whether an ex-employee of the Financial Creditor having rendered services in the past, should not be permitted to act as IRP at the instance of such Financial Creditor, regard being had to the nature of duties to be performed by the IRP & RP does not reflect the correct approach, the same shall not be treated as a precedent

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I. Case Reference

Case Citation : [2020] ibclaw.in 17 SC
Case Name : State Bank Of India Vs. M/S Metenere Ltd.
Appeal No. : Civil Appeal No. 2570 of 2020
Judgment Date : 19-Aug-20
Court/Bench : Supreme Court of India
Act : Insolvency & Bankruptcy Code 2016
Justice : Mr. Justice Arun Mishra
Justice : Mr. Justice Bhushan Ramkrishna Gavai 
Justice : Mr. Justice Krishna Murari
Impugned Order : State Bank of India Vs. M/s. Metenere Ltd. [2020] ibclaw.in 114 NCLAT
SC Orders : (2020) ibclaw.in 59 SC and (2020) ibclaw.in 82 SC

II. Full text of the judgement

O R D E R


Heard learned counsel for the parties at length. We are prima facie satisfied that the approach adopted by the National Company Law Appellate Tribunal, New Delhi (NCLAT) is not correct that merely Resolution Professional who remained in the Service of SBI and is getting pension, was dis entitled to be Resolution Professional.

However, since Mr. Tushar Mehta, learned Solicitor General as well as Mr. Krishnan Venugopal, learned senior counsel have agreed for appointment of new Resolution Professional by NCLT, let new Resolution Professional be appointed by the NCLT forthwith within a week in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.

We may observe that the change of Resolution Professional shall not reflect adversely upon the integrity of concerned Resolution Professional, who has been replaced.

Since the impugned order does not reflect the correct approach, the same shall not be treated as a precedent. Accordingly, the civil appeal is disposed of.

…………..…….J.
[ ARUN MISHRA ]

……………….J.
[ B.R. GAVAI ]

………………..J.
[ KRISHNA MURARI ]

NEW DELHI,
AUGUST 19, 2020.


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