The Delhi bench of the National Company Law Tribunal has held that a hearing is not mandated by the adjudicating authority during the appointment of a Resolution Professional ( RP ) under section 97(5) of the Insolvency and Bankruptcy Code, 2016. The Tribunal appointed an RP in an application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016.
Kishan Aggarwal, the Personal Guarantor of M/s Ambica Timber Trade Private Limited (Corporate Debtor in Liquidation), approached the NCLT for the initiation of the Insolvency Resolution Process (IR Process). The petition was made under Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution process for Personal Guarantors to Corporate Debtor) Rules, 2019, and Regulation 4(2) of IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019.
It was observed that, the Supreme Court in Dilip B Jiwrajka Vs. Union of India & Ors., held that no judicial adjudication is involved in the stages outlined in Sections 95-99 of the IBC. Furthermore, the SC held that no hearing is mandated by the Adjudicating Authority during the appointment of a Resolution Professional under Section 97(5) of the IBC.
The two-member bench of Mahendra Khandelwal (Judicial Member) and Dr Sanjeev Ranjan (Technical Member) appointed Mr Buchasia as the Resolution Professional and instructed him to submit the Assignment Declaration within seven days from the date of the decision to the Registry for official record-keeping. Further, the Resolution Professional was directed to diligently fulfil his obligations by submitting his report as required under Section 99 of the IBC.
The NCLT directed to list the matter on 15.07.2024 for the perusal of the Report of the RP and further proceedings.
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