Anurupa Pal
Published on: March 2 , 2022 at 11:07 IST
The National Company Law Appellate Tribunal (NCLAT) is the Bench Consisting of Justice M. Venugopal ,Judicial Member and Kanthi Narhari ,Technical Member In the Case Of Anil Kumar Ojha v. Chandramouli Ramasubramaniam Resolution Professional of SLO Industrial Ltd. & Anr. held that The Suspended Board of Directors has no Power Under IBC to appoint a Resolution Professional .
The Power to do so is only vested upon The Committee of Creditors (COC) and The Adjudicating Authority (AA).
The NCLAT suspended the Appellant’s appeal and held that the suspended Board of Directors has no right to change the RP and Imposed a fine of Rs.1 lakh on the Appealent .
The Bench clearly mentioned that an Application to Replace IRP Is To Be Addressed To The Adjudicating Authority Which Sends It To the Insolvency and Bankruptcy Board Of India (IBBI) for Confirmation . After the confirmation is received ,the RP shall be appointed.
Based on the above observations ,the Tribunal held that the suspended Board Of Directors does not have the power under the IBC to replace RP.
Also Read- What is National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT)?