NCLT appoints new resolution professional in Subhash Chandra's insolvency case

New Delhi: The National Company Law Tribunal (NCLT) has directed for the replacement of the resolution professional in the insolvency proceedings against Zee founder Subhash Chandra.

The order was passed by the insolvency tribunal on Monday over the plea filed by Subhash Chandra.

The Delhi-based NCLT bench has now appointed Shiv Nandan Sharma as RP in place of 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,” said NCLT.

Earlier on April 22, the NCLT admitted the plea filed by Indiabulls Housing Finance and directed the insolvency proceedings against media baron Subhash Chandra to be initiated.

Insolvency proceedings were initiated against Zee Entertainment Emeritus Chairman over default over a guarantee given to an Essel group firm Vivek Infracon Ltd.

“The newly appointed RP would discharge his functions in terms of our order dated April 22, 2024,” said NCLT in an 11-page-long order.

Chandra in his plea contended that he is unable to repose faith in the competence of RP.

During the proceedings, NCLT was apprised that RP had called the first meeting at Lodhi Hotel, where a lawyer accompanied him. This was also admitted by the RP during the course of hearing.

This was against the provisions of the Insolvency & Bankruptcy Code. It said the role assigned to RP is that of the consultant and the repayment plan has to be prepared only by the debtor.

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, said NCLT.