NCLAT Delhi: Former Resolution Professional Cannot Challenge Decisions Of New RP In CIRP Proceedings

NCLAT Delhi: Former Resolution Professional Cannot Challenge Decisions Of New RP In CIRP Proceedings

The National Company Law Appellate Tribunal, Delhi Bench, presided over by Shri Justice Ashok Bhushan (Chairperson), Shri Barun Mitra, and Shri Arun Baroka (Technical Members), has ruled that objections to decisions made by the new Resolution Professional cannot be raised by the former Resolution Professional, who has been replaced and is now advancing with the Corporate Insolvency Resolution Process (CIRP).

The application was filed by Partha Sarathy Sarkar (Erstwhile Resolution Professional) against the officials of the UTI for summoning attendance and document production. However, the appellant was replaced by a New Resolution Professional. The new RP submitted that they do not wish to further pursue the application. As a result, the application was disposed of as infructuous.

The appellant challenged this decision, arguing that the application should have been heard on its merits and a decision should have been made.

It was observed by the tribunal that “when the appellant, the Erstwhile Resolution Professional, was replaced with the New Resolution Professional, who is now proceeding with the CIRP, the decision taken by him cannot be objected by the Erstwhile Resolution Professional, who is the appellant herein.”.

The tribunal held that no intervention could be made in the application that had already been disposed of as infructuous.

With this observation, the appeal was dismissed.