NCLT grants request to safeguard resolution professional in Nitin Desai insolvency case

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insolvency code in deceased art director Nitin Desai’s ND's Art World’s insolvency case. In his petition before the NCLT, Nausher Kohli, counsel representing the resolution professional of ND's Art World, said that owing to the sensitivity involved in the matter, the resolution professional will only be able to take necessary steps in discharge of his duties as required to be undertaken under the insolvency code after “normalcy is restored".

Kohli informed the NCLT that the petition has been filed by the resolution professional praying that the creditors of ND's Art World and the Insolvency and Bankruptcy Board of India should not take any action against him for not being able to take necessary steps as required under the Insolvency Code in light of the extraordinary circumstances. “We consider that the facts brought to our notice can be taken on record to safeguard the office of resolution professional, and in particular, likelihood of any proceeding against him for negligence in discharge of his duties under the code in relation to CIR (corporate insolvency resolution) process," said a bench led by Justices Virendrasingh Bisht and Prabhat Kumar.

ND's Art World owned by Desai was admitted into insolvency by the NCLT in July. Edelweiss ARC had filed an application to initiate the corporate insolvency resolution process, which was allowed by the NCLT.

Following this, the dedicated bankruptcy tribunal appointed Jitender Kothari as the interim resolution professional to carry out the day-to-day affairs of the company. Consequently, Desai's widow had, following his death allegedly by suicide on 2 August, lodged an FIR on 4 August with the Khalapur police station invoking the offence of abetment of suicide against Edelweiss