Resolution Professional Cannot Prosecute Preferential Transactions After Approval Of Resolution Plan: NCLT Kolkata
2 years, 8 months ago

Resolution Professional Cannot Prosecute Preferential Transactions After Approval Of Resolution Plan: NCLT Kolkata

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The National Company Law Tribunal Kolkata bench comprising of Mr. V K Rajasekhar and Balraj Joshi held that an application for preferential transactions cannot be pursued either by the erstwhile Resolution Professional or the new Management of the Corporate Debtor after the approval of the Resolution Plan by NCLT. Resolution Professional received the transaction audit report on 26.06.2020 wherein certain preferential transactions were reported by the auditor and accordingly, on 01.08.2020, the Resolution Professional filed the application under Section 43 of the code. Analysis And Findings Of NCLT NCLT held that it is incumbent upon the Resolution Professional to adhere to Section 43 read with Regulation 35A of the IBBI Regulations, 2016 which mandates that the RP has to form an opinion whether the Corporate Debtor has been subjected to preferential transaction within or on seventy fifth day of the CIRP commencement date. In the light of the above, NCLT dismissed the application filed by the Resolution Professional and held that "35…Hence, the application for preferential transactions cannot be pursued by the erstwhile Resolution Professional nor can the new Management of the Corporate Debtor pursue the application," Case Title: Bank of India Vs Amrit Fresh Pvt.

History of this topic

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