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2017 (9) TMI 1565 - AT - Insolvency and Bankruptcy“Corporate Debtor” locus to prefer appeal under sub-section (1) of Section 61 through its Board of Directors or authorise person or its officers except through the “Interim Resolution Professional” - Held that:- The Role of 'Interim Resolution Professional' starts after initiation of 'Corporate Insolvency Resolution Process' against the 'Corporate Debtor'. The 'Interim Resolution Professional' once given consent to function directly or indirectly he cannot challenge his own appointment, except in case where he has not given consent. If the 'Corporate Debtor' is left in the hands of 'Interim Resolution Professional' to raise his grievance by filing an appeal under Section 61, it will be futile, as no 'Interim Resolution Professional' will challenge the initiation of 'Insolvency Resolution Process' which ultimately result into the challenge of his appointment. For example, if an application under Section 7 or 9 is admitted and at the stage of admission, the 'Interim Resolution Professional' is not appointed and such appointment is made later on within 14 days of admission under Section 16, then in case of appointment of an ineligible 'Interim Resolution Professional' against whom a Departmental proceeding is pending, can the 'Corporate Debtor' prefer appeal under Section 61 challenging the appointment of 'Interim Resolution Professional', if the 'Corporate Debtor' is asked to be represented through the same very 'Interim Resolution Professional'? The answer will be in negative means a 'Corporate Debtor' in such case cannot be represented to the 'Interim Resolution Professional', whose appointment is under challenge and for all purpose to be represented through the person who represented the 'Corporate Debtor' at the stage of admission before the Adjudicating Authority. At this stage, it is desirable to notice that though pursuant to Section 17, the Board of Directors of a 'Corporate Debtor' stand suspended (for a limited period of 'Corporate Resolution Process maximum 180 days or extended period of 90 days i.e. 270 days), but they continued to remain as Directors and members of the Board of Directors for all purpose in the records of Registrar of Companies under the Companies Act 2013. For the reasons aforesaid, we also reject the plea taken by Learned Counsel for the appellant that the “Corporate Debtor” has no locus to prefer appeal under sub-section (1) of Section 61 through its Board of Directors or authorise person or its officers except through the “Interim Resolution Professional”.
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