The Appellate Tribunal upheld the Adjudicating Authority's order ...

IRP's biased conduct favoring unsecured creditor over operational creditor faces probe, cost imposed.

Case Laws IBC

September 20, 2024

The Appellate Tribunal upheld the Adjudicating Authority's order and dismissed the appeal filed by the Resolution Professional (RP) against the Operational Creditor. The key points are: The RP acted in a biased manner by rejecting the Operational Creditor's claims and accepting an Unsecured Financial Creditor's claim of a paltry sum, making the latter the sole member of the Committee of Creditors (CoC). The Adjudicating Authority rightly observed that the RP's conduct needs thorough investigation. The IBBI is directed to investigate the RP's role and take necessary action. The RP is imposed a cost of Rs. 10 lakhs. The Unsecured Financial Creditor's claim of Rs. 1,05,877/- was filed after CIRP initiation, raising suspicions of backdating and unstamped documents. The Operational Creditor's claims were crystallized and admitted during CIRP initiation, and their rejection by the RP is questionable.

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The Appellate Tribunal upheld the Adjudicating Authority's order ...

IRP's biased conduct favoring unsecured creditor over operational creditor faces probe, cost imposed.

Case Laws IBC

September 20, 2024

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