NCLT Replaces Resolution Professional In Subhash Chandra's Personal Insolvency Case
The National Company Law Tribunal (NCLT), New Delhi bench of Justice Ashok Kumar Bhardwaj and Subrata Kumar Dash has replaced Raj Kamal Saraogi as the Resolution Professional (RP) in the insolvency proceedings involving Subhash Chandra, the Chairman Emeritus of Zee Entertainment Enterprises Limited (ZEEL) Chandra, serving as the personal guarantor for certain unresolved...
The National Company Law Tribunal (NCLT), New Delhi bench of Justice Ashok Kumar Bhardwaj and Subrata Kumar Dash has replaced Raj Kamal Saraogi as the Resolution Professional (RP) in the insolvency proceedings involving Subhash Chandra, the Chairman Emeritus of Zee Entertainment Enterprises Limited (ZEEL)
Chandra, serving as the personal guarantor for certain unresolved debts, raised substantial concerns about Saraogi's approach to the proceedings. Allegations surfaced regarding an unauthorized meeting between Chandra and Saraogi at Lodhi Hotel in Delhi, during which Saraogi was accompanied by a legal representative. Within this encounter, Chandra argued that Saraogi insinuated potential bankruptcy consequences which casted doubt on Saraogi's grasp of his responsibilities within the insolvency framework.
While this denial was supported by the RP and his counsel, the NCLT held that both the RP and his counsel met with the Personal Guarantor (PG). It highlighted that according to the Insolvency and Bankruptcy Code (IBC) and related regulations, there was no provision allowing the RP to bring a lawyer along while discharging their functions, particularly at the stage when the PG was to prepare a repayment plan.
Furthermore, the NCLT noted that the RP's conduct, such as holding meetings in an expensive hotel, seemed inconsistent with their role, which primarily involves facilitating the insolvency resolution process.
The NCLT held that the the specific role assigned to the RP involves providing consultation to the PG, while the repayment plan is the responsibility of the debtor. Any authorization for the RP to act on behalf of the debtor must be explicitly stated. The NCLT dismissed arguments suggesting otherwise, stating that such authorization would have been necessary for the RP to involve a lawyer in the process.
Therefore, the NCLT appointed Nandan Sharma as new RP and held it appropriate to replace the previous RP, Raj Kamal Saraogi.
Case Title: Indiabulls Housing Finance Ltd. Vs Indiabulls Housing Finance Ltd.
Case Number: (IB)-97/ND/2022 IA-2724/2024, IA-2148/2024
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