NCLT appoints new resolution professional in insolvency case against Subhash Chandra

The National Company Law Tribunal has ordered the replacement of the resolution professional in the insolvency proceedings against Zee founder Subhash Chandra , as reported by Legal World from The Economic Times. The insolvency tribunal issued this directive on May 27 in response to a plea filed by Subhash Chandra.

The Delhi NCLT bench has appointed Shiv Nandan Sharma as the new resolution professional, replacing Rajkamal Saraogi.

"We have ordered the replacement of Rajkamal Saraogi only because the procedure given in chapter 3 of IBC is beneficial procedure and the role of RP is only that of facilitator PG and creditors," stated the NCLT. Previously, on April 22, the NCLT admitted a plea filed by Indiabulls Housing Finance and directed the initiation of insolvency proceedings against media baron Subhash Chandra.

Insolvency proceedings were initiated against Zee Entertainment Emeritus chairman Subhash Chandra due to a default on a guarantee provided to Essel group firm Vivek Infracon. In his plea, Chandra argued that he could not trust the competence of the resolution professional (RP).

During the proceedings, the NCLT was informed that the RP had convened the first meeting at Lodhi Hotel, accompanied by a lawyer. The RP admitted to this during the hearing. This action was found to be in violation of the Insolvency & Bankruptcy Code, which states that the RP's role is solely consultative and that the repayment plan must be prepared by the debtor.

NCLT further mentioned, "It is difficult for the Tribunal to appreciate that the Resolution professional whose presence itself is recognised and acknowledged as that of a consultant can have the services of another lawyer while discharging the function as a consultant only."