The National Company Law Tribunal (NCLT) has replaced Raj Kamal Saraogi, who was appointed as Resolution Professional in the insolvency proceedings against Subhash Chandra, Chairman Emeritus of Zee Entertainment Enterprises Limited (ZEEL).
The Tribunal passed the order on a petition filed by Chandra, expressing a lack of confidence in the RP.
The Tribunal appointed Shiv Nandan Sharma in Saraogi’s place, stating that it was allowing the replacement of Saraogi on the grounds that the procedure given in Chapter 3 of IBC was a beneficial procedure.
Under the Insolvency and Bankruptcy Code (IBC), 2016, RPs are appointed by the Tribunal to carry on the financial affairs and process the claims against a person admitted to the insolvency resolution process.
The petition filed by Chandra said Saraogi met him earlier this month. The ZEEL Chairman said he could not gain confidence in the RP.
The petition further said that the impression Chandra gathered from the meeting was that the RP could not aptly comprehend and understand the vastness and intricacies of the complicated affairs as a businessman, a philanthropist and as a public servant.
The RP, tasked with bringing stability to Chandra’s financial condition, allegedly told the petitioner that the proceedings would lead to his bankruptcy. Saraogi, however, denied the allegation.
Chandra also mentioned that Saraogi had brought his lawyer with him in the meeting, although there was no law to this effect.
The tribunal made it clear that the order in this case cannot be used against Saraogi in any other proceedings as he was being replaced solely for a minor procedural misstep i.e. bringing his lawyer to meet Chandra.
In April 2024, the tribunal had admitted an insolvency case against Chandra on a plea filed by Indiabulls Housing Finance (IBHF) over guarantees given to a company called Vivek Infracon.