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2021 (10) TMI 84 - Tri - Insolvency and BankruptcySeeking issuance of directions to the suspended Board of Directors (Respondents) to co-operate the RP in smooth functioning of CIRP of the Corporate Debtor - Section 19(2) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- Section 19 (1) of the Code cast a duty upon to the ex-management and other personnel of the CD to furnish information and all assistance to the RP in managing the affairs of the CD. In the absence of cooperation, powers have been conferred on Adjudicating Authority to direct such personnel or other person to comply with the instructions of the resolution professional and to cooperate with him in collection of information and management of the Corporate Debtor. The provisions of Section 19 suggests that directions must be issued to the defaulting personnel of the ex-management to comply with the directions of the RP and to cooperate with him. The provisions of Section 19 are mandatory in nature so as to facilitate the RP to complete the CIRP expeditiously and manage the affairs of the CD as a going concern. Therefore, there is no escape from the conclusion that non-applicant respondents are under legal and moral obligation to co-operate with RP for smooth functioning of the CIRP. Petition disposed off.
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