Case Note & Summary
The appeal was filed by the erstwhile Resolution Professional of Maya Construction Pvt. Ltd., challenging certain observations made by the Learned Adjudicating Authority in a judgment dated 08.07.2026. The Appellant sought to expunge remarks from the judgment that suggested it was the Appellant's duty to provide cogent material regarding SARFAESI recoveries and the financial position of the Corporate Debtor. The Tribunal noted that the observations were made in the context of a claim by the Suspended Director regarding recoveries made by the Financial Creditor under the SARFAESI Act, which were not reflected in the admitted claim. The Tribunal emphasized that the Resolution Professional has a statutory obligation to present accurate financial information to the Committee of Creditors and the Tribunal. However, it clarified that the lack of evidence was attributed to the Suspended Director, not the Appellant. Ultimately, the Tribunal dismissed the appeal, stating that the observations made were not adverse to the Appellant and reaffirmed the duties of the Resolution Professional without imposing any costs.
Headnote
A) Insolvency Law - Duties of Resolution Professional - Statutory Obligations - Insolvency and Bankruptcy Code, 2016, Sections 18, 25 - The Tribunal highlighted the duties of the Resolution Professional to present the correct financial position of the Corporate Debtor. It was noted that no cogent material was provided by either party regarding SARFAESI recoveries, which the Tribunal deemed necessary for assessing the financial claims. Held that the observations were not adverse to the Appellant (Paras 2-4).
Issue of Consideration
Whether the observations made by the Learned Adjudicating Authority were adverse to the Appellant.
Final Decision
The Tribunal dismissed the appeal, stating that the observations made by the Learned Adjudicating Authority were not adverse to the Appellant and reaffirmed the duties of the Resolution Professional without imposing any costs.
Law Points
- Insolvency and Bankruptcy Code
- duties of Resolution Professional
- SARFAESI Act
- financial claims
- Committee of Creditors
