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2019 (8) TMI 1551 - AT - Insolvency and BankruptcyReplacement the IRP with the proposed RP by the COC - Section 22 of the Insolvency and Bankruptcy Code - HELD THAT:- The ‘Committee of Creditors’ is not required to record any reason or ground for replacing of the ‘Resolution Professional’, which may otherwise call for proceedings against such ‘Resolution Professional’. For the purpose of proceedings reported to the ‘Insolvency and Bankruptcy Board of India’ (for short, ‘the IBBI’, the ‘Committee of Creditors’ cannot await the decision of the IBBI for the purpose of replacement. The ‘Committee of Creditors’ having decided to remove the ‘Resolution Professional with 88% voting share, it was not open to the Adjudicating Authority to interfere with such decision, till it is shown that the decision of the ‘Committee of Creditors is perverse or without jurisdiction. The ‘Committee of Creditors’ with majority voting share of 88% having decided to replace ‘Mr. Kiran Shah’, he cannot function as ‘Resolution Professional’, though he will be entitled to his fee and cost, if any, incurred by him in terms of the ‘I&B Code’. It was not open to the Adjudicating Authority to direct the same very ‘Resolution Professional’ to file an application for ‘Liquidation’ particularly when the ‘Committee of Creditors’ in its meeting decided to request the Adjudicating Authority to extend certain period and if not allowed, then pass order of ‘Liquidation’. The impugned order dated 27th June, 2019 passed by the Adjudicating Authority is set aside - appeal allowed.
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