NCLT Ahmedabad Replaces IRP in Kotyark Industries CIRP Following Overwhelming CoC Vote

Background

The Ahmedabad Bench (Court–2) of the National Company Law Tribunal has allowed an application seeking replacement of the Interim Resolution Professional (IRP) in the corporate insolvency resolution process (CIRP) of Kotyark Industries Limited (formerly Yamuna Bio Energy Pvt. Ltd.). The application was moved under Section 22(3)(b) of the Insolvency and Bankruptcy Code, 2016, seeking the replacement of the existing IRP, Mr. Mahendra Prasad Jindal, with Mr. Hiten Ratilal Abhani as the Resolution Professional. The request was based on a resolution passed by the Committee of Creditors (CoC) in its first meeting held on January 3, 2026.

It was submitted that the CoC had approved the replacement with an overwhelming majority of 96.28% voting share. The proposed Resolution Professional, Mr. Abhani, holds a valid registration with the Insolvency and Bankruptcy Board of India (IBBI) and is empanelled as per the statutory requirements.

Counsel for the applicant argued that once the CoC has exercised its commercial wisdom in terms of Section 22 of the Code, the Adjudicating Authority is bound to give effect to the decision, subject to the eligibility and registration of the proposed professional.

Tribunal’s Findings and Order

Accepting the submissions, the Tribunal noted that the decision to replace the IRP was duly approved by the CoC with the requisite majority. Finding no legal impediment, the Bench allowed the application and appointed Mr. Hiten Ratilal Abhani (IBBI Reg. No. IBBI/IPA-001/IP-P-02068/2020-2021/13231) as the Resolution Professional for the CIRP of the corporate debtor.

The Registry was directed to forward a copy of the order to the IBBI for information and record. Accordingly, IA/44(AHM)2026 was allowed and disposed of.