The National Company Law Appellate Tribunal (NCLAT) has held that a Resolution Professional (RP) cannot be personally faulted for permitting a sole Operational Creditor to vote on its own Resolution Plan where such action was taken in a bona fide discharge of statutory duties under the Insolvency and Bankruptcy Code (IBC).
Consequently, the Appellate Tribunal expunged the adverse personal remarks and consequential directions earlier issued against the erstwhile RP while maintaining its findings on the legal irregularities in the Corporate Insolvency ResolutionProcess (CIRP).
The appeal arose from the CIRP of Rancom Healthcare Pvt. Ltd. where Mahavir Medicare was the sole Operational Creditor and the only member…