M/s Raj Oil Mills Vs M/s Edelweiss Asset Reconstruction Company, NCLT Mumbai
Fact of the Case
CD file an application for insolvency process u/s 10 of the I&B Code, and petition was accepted and IRP was appointed to conduct the proceedings. Committee of creditors was formed in which 2 major creditors by value holds 61.84 per cent (M/s Edelweiss ARC- 53.52 percent and IFCI factor-8.32 per cent). A dead-lock situation in respect of appointment of resolution professional where these two major creditors wanted to appoint another resolution professional in place of existing IRP but dost not have clear majority to do so.
Section 22(2) of I&B Code, 2016 prescribed that the committee of creditors may by a majority vote of not less than 75 per cent of the voting share of the financial creditors either to resolve to appoint the IRP as a resolution professional or to replace the IRP by another Resolution Professional.
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