The Supreme Court of India has ruled that once an Interim Resolution Professional (IRP) is appointed under the Insolvency and Bankruptcy Code, 2016 (IBC), the management of a corporate debtor vests in the IRP, making it incompetent for a suspended director to file an appeal in the name of the company.
A Bench comprising Justice Sanjay Kumar and Justice K. Vinod Chandran held that such an appeal is not merely “defective” but “wholly incompetent” from its inception. The Court further clarified that the National Company Law Appellate Tribunal (NCLAT) cannot allow the conversion of such an incompetent appeal into a maintainable one after the expiry of the statutory limitation period.
Background of the Case
The appeal…