New Delhi: In a significant development in the insolvency proceedings against Zee founder Subhash Chandra, the National Company Law Tribunal (NCLT) has ordered the replacement of the resolution professional (RP). The decision was reported by Legal World, citing The Economic Times, and was made public on May 27.
Responding to a plea filed by Chandra, the Delhi NCLT bench appointed Shiv Nandan Sharma as the new resolution professional, replacing Rajkamal Saraogi. The tribunal’s order comes in the wake of concerns raised by Chandra regarding the competence and actions of the previous RP.
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“We have ordered the replacement of Rajkamal Saraogi only because the procedure given in chapter 3 of the Insolvency and Bankruptcy Code (IBC) is a beneficial procedure, and the role of the RP is only that of a facilitator for the creditors,” stated the NCLT. This move follows the tribunal’s earlier directive on April 22 to admit a plea from Indiabulls Housing Finance, initiating insolvency proceedings against Chandra.
The insolvency case stems from a default on a guarantee provided to Essel group firm Vivek Infracon. Chandra, in his plea, expressed a lack of confidence in Saraogi’s competence, leading to the tribunal’s decision to appoint a new RP.
During the proceedings, it was revealed that Saraogi had convened the first meeting at Lodhi Hotel, accompanied by a lawyer. This was admitted by Saraogi during the hearing. The NCLT found this action to be in violation of the Insolvency & Bankruptcy Code, which stipulates that the RP’s role is consultative and that the repayment plan must be prepared by the debtor.
“It is difficult for the Tribunal to appreciate that the Resolution professional, whose presence itself is recognized and acknowledged as that of a consultant, can have the services of another lawyer while discharging the function as a consultant only,” noted the NCLT.
The appointment of Shiv Nandan Sharma as the new RP is expected to bring a fresh perspective to the ongoing insolvency proceedings. This decision underscores the importance of adhering to the procedural norms outlined in the IBC and ensuring that the RP’s role remains strictly consultative, aimed at facilitating a fair and transparent resolution process.
This development is a crucial step in the insolvency case against Subhash Chandra, who has been a prominent figure in the media industry. As the proceedings continue, stakeholders will be closely watching the actions of the new RP to ensure a resolution that aligns with the principles of the IBC.
