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NCLAT Chennai held that the Committee of Creditors may replace a Resolution Professional under Section 22 of the IBC provided the replacement is not contrary to the Code, expunging adverse findings against the former RP and remitting his fee claim to the NCLT for adjudication.
NCLAT clarifies that Resolution Professionals under the IBC can request documentation to verify claims but lack adjudicatory powers. The ruling denies NOIDA’s claims for farmer compensation and time extension charges due to insufficient substantiation, reinforcing the limited scope of RP authority during CIRP.
NCLAT rules that possessory rights under Section 53A of the Transfer of Property Act, when affirmed by a consent decree, cannot be disturbed by a Resolution Professional under the Insolvency and Bankruptcy Code. The ruling clarifies that IBC proceedings do not automatically extinguish pre-existing property rights established through judicial decrees, offering critical protection to parties with settled possessory claims.
NCLAT grants exclusion of 87 days from the CIRP timeline due to delays in transitioning Resolution Professionals, emphasizing that liquidation should be a last resort. The ruling reinforces the need to preserve corporate debtors as going concerns, offering relief to stakeholders facing procedural delays under the IBC.
The NCLAT has ruled that unregistered profit-sharing agreements, even if historically honored, cannot override the statutory moratorium under IBC to claim possession of corporate debtor assets. This clarifies that only registered leases or lawful tenancies survive CIRP, empowering Resolution Professionals to evict unauthorized occupants without prolonged litigation.
The NCLAT has ruled that once a statutory auditor resigns, the resolution professional cannot compel them to furnish documents they no longer hold or control, even under Section 19 of the IBC. This clarifies the limits of an auditor’s post-resignation obligations and protects them from being treated as de facto management agents in insolvency proceedings.
The NCLAT has ruled that once a Resolution Professional admits a homebuyer's claim within the statutory 60-day window under the approved Resolution Plan, the Successful Resolution Applicant cannot later demand re-verification or impose additional documentation requirements. This upholds the finality of the RP's assessment and protects homebuyers from post-approval procedural delays, reinforcing the IBC's goal of time-bound resolution.