The National Company Law Tribunal (NCLT) at Kochi has ruled that the Committee of Creditors (CoC) cannot cripple the Corporate Insolvency Resolution Process (CIRP) by refusing to meet its essential costs.
It observed that the insolvency process cannot function if the Resolution Professional is deprived of the funds required to discharge statutory duties.
A bench of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy observed:
“The Committee of Creditors, being the supreme decision-making body during the CIRP, cannot cripple the insolvency process by refusing to make arrangements for meeting the essential costs of the process. Any action or act of the CoC to deprive the Resolution Professional of such funds would…