TMI Blog2018 (7) TMI 2126X X X X Extracts X X X X X X X X Extracts X X X X ..... ional in the manner provided under said section. In terms of Section 27(2), the Committee of Creditors at a meeting by vote of 75% of voting share (as per un-amended provision) can propose to replace the Resolution Professional appointed under Section 22 with another Resolution Professional - except for pendency of a disciplinary proceeding or ineligibility in terms of provisions of the I B Code, there is no bar for appointment of a person as Resolution Professional. A Resolution Professional if empaneled as an Advocate or Company Secretary or Chartered Accountant with one or other Financial Creditor that cannot be a ground to reject the proposal, if otherwise there is no disciplinary proceeding is pending or it is shown that the person i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Bank of India , which is one of the members of the Committee of Creditors. 2. The question arises for consideration in this appeal is whether the Adjudicating Authority can reject the proposal of the Committee of Creditors for appointment of Resolution Professional, on the ground that the name of proposed Resolution Professional is appearing in the panel of one of the member of the Committee of Creditors? 3. Learned Senior Counsel for the Appellant referred to the provisions of the Code and submitted that Mr. K. G. Somani was not empaneled as Retainer of State Bank of Hyderabad. He was not in the payroll of the Bank and is not an employee. He is a panel lawyer, as generally maintained by the Banks, Public Sector Undertakings a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppointed. 7. There is no other ineligibility prescribed for appointment of Interim Resolution Professional or Resolution Professional, either under I B Code or the Regulations framed by the IBBI. However, in a particular case, the Adjudicating Authority for one or other good reason can remove a Resolution Professional for his act of omission and commission. Similarly, for the ground(s) to be recorded in writing, the name of the proposed Resolution Professional can be rejected by the Adjudicating Authority. 8. Section 22 of I B Code relates to appointment of Resolution Professional. In the first meeting of the Committee of Creditors by majority voting of not less than 75% voting share (as per un-amended provision) of the Financial Cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... another resolution professional under this section. 10. From the aforesaid provision it is clear that during the Corporate Insolvency Resolution Process, at any time, if the Committee of Creditors is of opinion that the Resolution Professional appointed under Section 22 is required to be replaced, it may replace him with another Resolution Professional in the manner provided under said section. In terms of Section 27(2), the Committee of Creditors at a meeting by vote of 75% of voting share (as per un-amended provision) can propose to replace the Resolution Professional appointed under Section 22 with another Resolution Professional. 11. Admittedly, Mr. Rakesh Kumar Jain was appointed as Interim Resolution Professional and after c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Resolution Professional and not because of allegation, it will also go against the Resolution Professional in interest of the Resolution Process. 15. We have already held that except for pendency of a disciplinary proceeding or ineligibility in terms of provisions of the I B Code, there is no bar for appointment of a person as Resolution Professional. A Resolution Professional if empaneled as an Advocate or Company Secretary or Chartered Accountant with one or other Financial Creditor that cannot be a ground to reject the proposal, if otherwise there is no disciplinary proceeding is pending or it is shown that the person is an interested person being employee or in the payroll of the Financial Creditor. 16. In the present case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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