Allahabad Bank Vs Ural India Ltd - IRP appointed as RP, by AA, without resolution of CoC.

NCLT Kolkata (31.12.2019) in Allahabad Bank Vs Ural India Ltd  [CP(IB) No. 480/KB/2018]  held that;

• It is taken on record. COC in its meeting dated 27.12.2019 did not confirm appointment of IRP, though Coo consists of one member, i.e. the financial creditor. Since CIRP is time-bound, we appoint the present IRP as the RP and direct him to proceed with the CIRP,

Excerpts of the order;

ORDER Ld. IRP appears. First progress report is filed. It is taken on record. COC in its meeting dated 27.12.2019 did not confirm appointment of IRP, though Coo consists of one member, i.e. the financial creditor. Since CIRP is time-bound, we appoint the present IRP as the RP and direct him to proceed with the CIRP, as per rules. Issue notice to the Financial Creditor directing him to pay Rs.1,00,000/ to the IRP towards his fees and CIRP cost. Matter to appear on 23.01.2020. 

-----------------------------------------------------------------

Blogger’s comments; In light of the following provisions of the Code & Regulations, if there was any need to appoint IRP as RP by AA in absence of any resolution of the CoC.

Insolvency and Bankruptcy Code, 2016.

Section 16. Appointment and tenure of interim resolution professional. -

XXXX

(5) The term of the interim resolution professional shall continue till the date of appointment of the resolution professional under section 22.

# Section 22. Appointment of resolution professional. -

(1) The first meeting of the committee of creditors shall be held within seven days of the constitution of the committee of creditors.

(2) The committee of creditors, may, in the first meeting, by a majority vote of not less than sixty-six per cent. of the voting share of the financial creditors, either resolve to appoint the interim resolution professional as a resolution professional or to replace the interim resolution professional by another resolution professional.

CIRP Regulations;

# Regulation 17. Constitution of committee.

XXXX

(3) Where the appointment of resolution professional is delayed, the interim resolution professional shall perform the functions of the resolution professional from the fortieth day of the insolvency commencement date till a resolution professional is appointed under section 22.

----------------------------------------------