Case Details

  • Case Name: I.A. (IB) No. 1085/KB/2025 in C.P.(IB) No. 295/(KB)/2024
  • Court: National Company Law Tribunal, Kolkata Bench, Court-II
  • Date of Pronouncement: May 22, 2026
  • Parties: Financial Creditor - HDFC Bank Limited; Personal Guarantor - Vishal Kejriwal; Respondent - Swapnil Jain, Resolution Professional
  • Period of Violation: Default occurred on February 4, 2024

Parties Involved

  • Petitioners: HDFC Bank Limited
  • Respondents: Vishal Kejriwal (Personal Guarantor), Swapnil Jain (Resolution Professional)
  • Corporate Debtor: K.B. Sponge Iron Limited
  • Advocates: For Financial Creditor - Ms. Tannya Baranwal, Adv., Ms. Vanshika Khaitan, Adv.; For Resolution Professional - Mr. Riyanshu Agarwal, Adv., Mr. Swapnil Jain in person
  • Proposed Resolution Professional: Nitin Daga (Registration No. IBBI/IPA-001/IP-P02213/2020-2021/13405)

Issues / Allegations / Violations

  • HDFC Bank sanctioned credit facilities aggregating Rs. 16,31,84,572 to K.B. Sponge Iron Limited on January 11, 2022, with Vishal Kejriwal executing personal guarantee.
  • Corporate Debtor defaulted in repayment of outstanding liabilities on February 4, 2024.
  • HDFC Bank filed Company Petition under Section 95 of IBC against Vishal Kejriwal after issuing Demand Notice on June 20, 2024.
  • Swapnil Jain was appointed as Resolution Professional on September 10, 2024, and he submitted Report under Section 99 on October 7, 2024, recommending admission.
  • Disputes arose between HDFC Bank and Swapnil Jain primarily over fees and expenses, with Bank paying Rs. 75,000 on January 2, 2025, but RP alleging non-payment during hearing on January 21, 2025.
  • Bank apprehended that continuance of Swapnil Jain may prejudice their interests and adversely affect proceedings.

Findings & Observations

  • NCLT referred to Section 98 of IBC, which allows replacement of Resolution Professional if debtor or creditor has opinion based on rational basis.
  • Cited Hon'ble NCLAT case Mr. Vinay Rai v. Technology Development Board and Anr. [2024 ibclaw.in 724 NCLAT], stating that opinion should be founded on rational basis and objective consideration.
  • Found that disputes over fees and expenses, including payment of Rs. 75,000 and alleged non-payment claims, constitute sufficient rational basis for seeking replacement.
  • Application was found meritorious.

Penalties / Settlements / Directions

  • No monetary penalties, disgorgement, or settlements imposed.
  • Directions: NCLT directed IBBI to confirm whether any disciplinary proceedings are pending against proposed Resolution Professional Nitin Daga.
  • IBBI must communicate within ten days of receipt of direction either confirmation of appointment or rejection with recommendation of new Resolution Professional.

Corrective Actions & Future Obligations

  • IBBI must respond within ten days from receipt of direction under Section 98(5) of IBC.
  • Matter listed for further directions on June 19, 2026.
  • If replaced, Swapnil Jain must share all information with new Resolution Professional and cooperate as required under Section 98(8) of IBC.

Final Ruling & Enforcement

  • Interlocutory Application I.A. (IB) No. 1085/KB/2025 allowed.
  • Order to be communicated forthwith to all parties and IBBI via email.
  • Certified copy of order may be issued upon compliance of requisite formalities.
  • No additional enforcement actions specified.