Resolution professionals can't challenge tribunal order, says Supreme Court
Supreme Court has said resolution professionals (RPs) do not have the power to file appeals against the decisions of bankruptcy courts as they are «neutral» persons appointed to assist the tribunals.
The top court's observation could help speed up insolvency resolutions, legal experts said.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Leadership in AIVisitIndian School of BusinessISB Chief Technology OfficerVisitNorthwestern UniversityKellogg Marketing Leadership Development ProgramVisitIIM KozhikodeIIMK Senior Management ProgrammeVisitOnly aggrieved parties like the Committee of Creditors (CoC) and others can file appeals against the decisions of the National Company Law Tribunal (NCLT) or the National Company Law Appellate Tribunal (NCLAT), a top court bench led by Justice Sanjiv Khanna said while dismissing an appeal filed by the RP of Regen Powertech.
RPs are appointed by the NCLT to oversee the affairs of debt-laden firms during their insolvency proceedings. They take control of such companies, operate them, complete all the statutory processes, and get resolution proposals. It is the CoC that takes decisions about the feasibility and the viability of a resolution plan, the court observed.
Regen Powertech's RP had moved the court against the NCLAT's decisions directing consolidation of CIRPs of Regen Powertech and Regen Infrastructure and Services and setting aside of the approved resolution plan.
«We are of the opinion that in view of the facts and circumstances, the RP should not have filed the present appeals. The RP should have maintained a neutral stand,» the bench said. «It is for the aggrieved parties, including the CoC of Regen
