The National Company Law Court (“NCLT”), New Delhi Bench, consisting of Shri Abni Ranjan Kumar Sinha (Judicial Member) and Shri Hemant Sarangi (technical member), while ruling on a request for Educomp Infrastructure & School Management Ltd. against Millennium Education Foundation, ruled that a Chair of the Oversight Committee may file an application with BAC to initiate the Corporate Insolvency Resolution Process (“CIRP”) against the corporate debtor’s debtor. The Chairman of the Supervisory Committee is empowered under the IBC to protect the interests of the Debtor Company. The order was placed on 03.06.2022.
Educomp Infrastructure & School Management Ltd. (“Applicant”) had filed a claim under Section 9 of the Insolvency and Bankruptcy Code 2016 (“BAC”) requesting the initiation of CIRP against Millenium Education Foundation (“Defendant”). The applicant himself is in the process of implementing the resolution plan and has therefore submitted the application through the chairman of the monitoring committee.
Can the request submitted by the chairman of the monitoring committee be considered appropriate with regard to the procedures of the CIB?
The NCLT bench observed that the Chairman of the Oversight Committee falls within the jurisdiction of the IBC under Section 2(d), which states that the provision of the IBC applies to “any other body constituted under a law in force, which the central government may, by notification, specify in this respect”. The Monitoring Committee is formed and its Chairman is appointed in accordance with the provisions of the CIB. Consequently, the President has the necessary powers to take the necessary measures to protect the interests of the Debtor Company.
The Chamber issued an opinion to the defendant and registered the case for 04.07.2022.
Case title: Educomp Infrastructure & School Management Ltd. against Millenium Education Foundation, CP No. (IB) 245/ND/2022.
Claimant’s advice: Adv. Anshul Sehgal
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