TMI Blog2022 (9) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... ate any opportunity of hearing to the Resolution Professionals be given by the Adjudicating Authority before approving the proposal of new Resolution Professional. Section 27 requires the CoC to forward the name of proposed Resolution Professional to the Adjudicating Authority and the Adjudicating Authority is required to forward the name of the proposed Resolution Professional to the Board for its confirmation. The scheme of Section 27 does not indicate that Resolution Profession is to be made party and is to be issued notice before taking decision to appoint another Resolution Professional. Looking to the purpose and object of the I B Code, where timeline is the essential factor to be taken into consideration at all stages, there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placement of the Resolution Professional has been allowed and in place of the Appellant one Mr. Rajiv Khurana has been appointed as Resolution Professional. Aggrieved by the impugned order, the Appellant has come up in this Appeal. 2. Learned counsel for the Resolution Professional submits that the Adjudicating Authority passed the impugned order without giving any opportunity of hearing and within issuing any notice to the Appellant. It is submitted that when the order was being passed by the Adjudicating Authority replacing the Appellant, he was entitled for the opportunity to be heard in the application in consonance with the principles of natural justice. Section 27 of the I B Code which provides for replacement of the Resolution Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther resolution professional in the manner provided under this section. 2[(2) The committee of creditors may, at a meeting, by a vote of sixty-six per cent. of voting shares, resolve to replace the resolution professional appointed under section 22 with another resolution professional, subject to a written consent from the proposed resolution professional in the specified form.] (3) The committee of creditors shall forward the name of the insolvency professional proposed by them to the Adjudicating Authority. (4) The Adjudicating Authority shall forward the name of the proposed resolution professional to the Board for its confirmation and a resolution professional shall be appointed in the same manner as laid down in secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or its confirmation. The scheme of Section 27 does not indicate that Resolution Profession is to be made party and is to be issued notice before taking decision to appoint another Resolution Professional. Looking to the purpose and object of the I B Code, where timeline is the essential factor to be taken into consideration at all stages, there is no warrant to permit a Lis to be raised by the Resolution Professional challenging his replacement by the CoC. The decision taken by the CoC is a decision by vote of 66% and when the decision is by votes of a collective body, the decision is not easily assailable and replacement is complete as per Scheme of Section 27 when the resolution is passed with requisite 66% voting share. 8. Learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany Appeal (AT) (Ins.) No. 497 of 2020, Bank of India vs. Nithin Nutritions Pvt. Ltd. , where after noticing the scheme of Section 27, this Tribunal has made following observations in Para 6 of the judgment:- 6. In both the above provisions, the law nowhere says that the COC is required to give reasons. This appears to be also right. The reason is that relationship between the IRP/RP and the COC is that of confidence. If there 8 Company Appeals (AT) (Ins) Nos.497, 498, 499, 500 and 501 of 2020 is loss of confidence and combination is continued, the Corporate Debtor would be put to loss because of the bad relationship between IRP/RP with COC. 10. From the decisions of this Tribunal, as noted above, it is clear that replacement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ringed. It would have been wise on his part to bow to the commercial wisdom of the Committee of Creditors and quit gracefully. Be that as it may, there was no merit in the case set up by IRP before the Adjudicating Authority and the same was required to be dealt with without insisting upon filing of affidavit by the IRP in regard to the provision of law invoked to pass the resolution. 12. We may also refer to the judgment relied by learned counsel for the Appellant in Company Appeal (AT) (Ins.) No. 29 of 2017, MCL Global Steel Pvt. Ltd. Anr. vs. Essar projects India Ltd. Anr. . In the above case, observations on which learned counsel for the Appellant has placed reliance are at para 13 of judgment wherein Para 50 of the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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