In a case involving SLO Industrial Ltd, the Chennai bench of the NCLAT consisting of M Venugopal and Kanthi Narahari mentioned the facility to take action has solely been vested within the committee of collectors (CoC) after which the adjudicating authority.
The bench mentioned beneath the IBC 2016, a suspended board didn’t have the facility to take away an current decision skilled (RP) and search the appointment of one other RP to handle the corporate by way of the chapter course of.
An adjudicating authority is to stick to the procedural formalities that are talked about within the IBC, relying on the controversies concerned, it mentioned.
An RP could possibly be eliminated by the CoC with the members approving it with a 66% vote share, the NCLAT mentioned.
