M.K. Shrawat, Member - (1.) An application has been moved on 24.08.2017 (MA No. 362/2017) by a Financial Creditor viz. M/s. Edelweiss Asset Reconstruction Company Limited seeking following relief:-- "In these circumstances, it is, therefore, most respectfully prayed by the Applicant that this Hon'ble Tribunal may be pleased to:-- (A) Appoint Mr. Rajendra Ganatra (Registration No. IBBI/IPA-003/IP-N00049/2017-18/10363) enrolled with the Indian Institute of Insolvency Professionals of ICAI as Insolvency Professional, as the RP of Respondent No. 1; (B) pass such further or other orders as this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the case." Background of the case is that the Corporate Debtor viz. M/s. Raj Oil Mills has submitted a Petition on 23.06.2017 seeking invocation of the provisions of section 10 of the I & B Code to declare itself insolvent. An order was pronounced on 10.07.2017 vide TCP No. 1132/I & BP/NCLT/MB/MAH/2017 wherein the Petition was admitted and by appointing an IRP viz. Mr. U.V.G. Nayak, it was ordered to commence the Corporate Insolvency Resolution Process. Consequence thereupon the IRP called a meeting of Committee of Creditors on 09.08.2017. A commencement report was placed on record. Thereafter, an Application (MA No. 355/2017) was moved by the IRP seeking direction to remove the dead-lock arose due to unclear verdict of the Committee of Creditors in favour of one of the Insolvency Professional. On due consideration of the facts and the percentage of voting for and against the said agenda, this Bench has decided the said M.A. (355/2017) vide order dated 24.08.2017 in following manner:-- "6. Heard the submissions of the Learned Representatives present on behalf of the IRP and a Representative on behalf of the Co-operative Bank, one of the Financial Creditor. Also heard IRP Mr. Nayak present in person. Facts as narrated in the Application have demonstrated that due to unclear stand by few Creditors viz. Edelweiss ARC, SIDBI Limited and IFCI Factors Limited the selection of the Insolvency Professional could not be finalized along with other Resolutions. On due consideration of the percentage of Voting for and against as annexed with this Application, this bench is of the view that the present IRP shall immediately commence one more Meeting of the Creditors and repeat the Resolutions specially the Resolution about the selection of the Insolvency IP within Five days time from the receipt of this Order. The process already adopted can be followed again. It is hereby made clear that time is the essence hence any deadlock or stalemate has to be removed as early as possible. The outcome of the COC and the Compliance Report shall be presented before this Bench on the very next day, if finalized, or in the alternative, within Two days time. 7. During this interregnum the present IRP shall perform all the duties as prescribed under The Code so that the ongoing Business of the Debtor Company should not get effected. 8. On perused of the bifurcation of the remuneration and expenses of the IRP and Company Secretary, it appears that the Professional Fees is reasonable for the time being but subject to revision depending upon the progress or outcome of the Insolvency Resolution Process."
(2.) In compliance of the directions of the said order, IRP Mr. U.V.G. Nayak has placed on record a compliance report dated 12.09.2017. In the compliance report it is informed that a second meeting of the Committee of Creditors (CoC) was convened on 11.09.2017 and the agenda put up for voting, as informed in the report, was as under:--
(3.) The Result of the voting has also been informed in this "compliance report". Presently we are not concerned about rest of the agenda but confine ourselves to the main issue of appointment of RP/Insolvency Professional which is raked up in this Miscellaneous Application, now under consideration. It is informed that the continuation and appointment of Mr. U.V.G. Nayak was voted in favour by 31.70 per cent share of voting, however, the appointment of Mr. Rajendra M. Ganatra was voted in favour by 61.84 per cent of the voting share. It is clarified that the Financial Creditor M/s. Edelweiss ARC is having 53.52 per cent and IFCI Factors has 8.32 per cent, thus totalling 61.84 per cent, have approved the name of Mr. Ganatra as Insolvency Professional.;