Although there is a provision in the section 233 of the Code that no suit, prosecution or other legal proceeding shall lie against the insolvency professional, liquidator and other officials of IBBI for anything which is done in good faith under the Code, professionals feel that it is too hard to prove that a particular act was done in a good faith.
Nilesh Sharma from the Dhir & Dhir Associates says while the section does not allow any suit or prosecution against IP,
dilution happens when good faith comes into the picture.
Sharma argues, Once allegations in this regard are made against IP, proving that a particular act was done in good faith will not be an easy task and at the same time the IP will have…
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