Taking a stern view against the intimidation and bullying of Insolvency Resolution Professionals (IRPs) by defaulting companies, the National Company Law Tribunal (NCLT) has ruled that the IRP is the supreme authority once the Tribunal has admitted a case in the bankruptcy court.
Two benches of the Tribunal, as a warning to errant promoters, has ordered that police protection be given to the IRPs in two different cases. It has also ordered creditors to co-operate with the latter to complete the bankruptcy proceedings on time. The rulings came in cases related to Rolex Cycles and Ashok Magnetics.
ROLEX CYCLES
Hero Steels had initiated insolvency proceeding against Rolex Cycles to recover Rs 2 crore of dues. The Tribunal had appointed…
Read the full article at: http://economictimes.indiatimes.com/markets/stocks/news/bullying-wont-be-allowed-irps-are-supreme-nclt/articleshow/60728185.cms