NCLAT Removes IRP in Sequel Buildcon Insolvency Case for Breaching Fiduciary Duties and Conflict of Interest.

The NCLAT held that there was a breach of fiduciary duties and conflict of interest by the Interim Resolution Professional (IRP) in the appointment of consultants during the Corporate Insolvency Resolution Process of Sequel Buildcon Private Limited. The IRP failed to disclose relevant information regarding credentials and manner of appointment of consultants to the applicant, a key financier. The IRP's non-disclosure of past associations with the consultants violated the Code of Conduct under the Insolvency and Bankruptcy Code. To safeguard the interests of stakeholders, especially homebuyers, the NCLAT directed the immediate removal of the IRP and the consultants appointed by them. .....

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