The National Company Law Tribunal (NCLT) has replaced Raj Kamal Saraogi after Subhash Chandra, Chairman Emeritus of Zee Entertainment Enterprises Limited (ZEEL) filed a plea expressing a lack of confidence in the resolution professional (RP). Saraogi was appointed as the RP by the tribunal in 2022. For now, the tribunal has accepted Chandra’s contention and appointed Shiv Nandan Sharma in Saraogi’s place.
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.
According to the order, Saraogi met Chandra earlier this month. But Chandra was “unable to gain confidence in the RP and the impression what he gathered is 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”.
Additionally, the RP, who is tasked with bringing stability to his financial condition, allegedly told him that the proceedings would lead to his bankruptcy. Saraogi, however, denied the allegation. Chandra also mentioned that Saraogi had brought his lawyer with him at 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 is being replaced solely for a minor procedural misstep i.e. bringing his lawyer to meet Chandra.
In April 2024, Chandra was admitted to personal insolvency in a plea filed by Indiabulls Housing Finance (IBHF) over guarantees given to a company called Vivek Infracon.