The National Company Law Tribunal (NCLT) directed the Insolvency and Bankruptcy Board of India (IBBI) to sack Pankaj Srivastava, the Interim Resolution Professional (IRP) in the case of Byju’s bankruptcy proceedings. The Tribunal also directed the board to take disciplinary action against him for his conduct that was unfit and improper as an officer of the Tribunal. “The conduct of the IRP in the present case has been filed with the intent to mislead the Tribunal.” The Tribunal, taking note of the conduct of the IPR seriously while hearing the petition filed by Aditya Birla Finance and Glas Trust, ordered the dissolution of the Committee of Creditors (CoC) formed to oversee the bankruptcy proceedings against the company. The petitioners alleged serious fraud in creditor classification.
A bench of justices K. Biswal and Ravichandran Ramaswamy has ordered the reconstitution of the Committee of Creditors (CoC), which will now include Glas Trust – a consortium of U.S.-based lenders, and Aditya Birla Finance. The newly formed CoC will have the authority to appoint a new resolution professional. Earlier, a U.S. court ordered that Byju’s repay $1.2 billion to Glas Trust. In India, Insolvency Professionals (IPs) play a significant role in helping to save companies that are mismanaged and burdened with debt.
IRPs, RPs and liquidators play crucial roles in the insolvency process. They hold significant power and authority over the company, resulting in the suspension of the company’s board. The Insolvency and Bankruptcy Board of India (IBBI) has more than 4,400 registered Insolvency Professionals listed.
