(1) Where, at any time during the corporate insolvency resolution process, the committee of creditors is of the opinion that a resolution professional appointed under section 22 is required to be replaced, it may replace him with another resolution professional in the manner provided under this section.
(2) The committee of creditors may, at a meeting, by a vote of sixty-six per cent. of voting shares, resolve to replace the resolution professional appointed under section 22 with another resolution professional, subject to a written consent from the proposed resolution professional in the specified form.
(3) The committee of creditors shall forward the name of the insolvency professional proposed by them to the Adjudicating Authority.
(4) The Adjudicating Authority shall forward the name of the proposed resolution professional to the Board for its confirmation and a resolution professional shall be appointed in the same manner as laid down in section 16.
(5) where any discriplinary proceeding are pending against the proposed resolution professional under sub-section (3), the resolution professional appointed under section 22 shall continue till the appointment of another professional under the section.
Legal Commentary & Landmark Judgments: Section 27
Section 27 empowers the Committee of Creditors to replace the Resolution Professional at any time during the CIRP by a resolution passed with a majority of sixty-six percent of voting shares.
When moving an application under Section 27 before the NCLT for replacement of an RP, simply annex the CoC resolution, voting sheet showing >66% approval, and the written consent (Form 2) of the incoming RP. No adversarial allegations need to be pleaded.