Insolvency and Bankruptcy Code, 2016 (IB Code) – Sections 7, 9, 10, 16, 22 – This case involves a challenge by an Insolvency Professional (IP) to an order passed by the National Company Law Tribunal (NCLT), where the NCLT appointed a different Interim Resolution Professional (IRP) than the one proposed by the Corporate Debtor (CD) in an application under Section 10 of the IB Code.
The petitioner, an IP, argued that Section 16(2) of the IB Code mandates the NCLT to appoint the IRP proposed by the Financial Creditor (FC) under Section 7 or the CD under Section 10, provided no disciplinary proceedings are pending. The NCLT justified its decision by citing multiple changes in the CD’s IRP recommendation.
The court analyzed Sections 7, 9, 10, and 16 of the IB Code, emphasizing that when an application is filed under Sections 7 or 10, the NCLT must appoint the IRP recommended by the applicant if no disciplinary proceedings are pending.