Adjudicating Authority Cannot Accept Report Of Resolution Professional Mechanically, Must Conduct Independent Assessment U/S 100 Of IBC: NCLAT

The NCLAT ruled that the Adjudicating Authority (NCLT) cannot accept the report of the Resolution Professional (RP) mechanically but must conduct its own independent assessment under Section 100 of the IBC. This emphasizes the NCLT's duty to independently evaluate resolution plans concerning personal guarantors. The ruling ensures that the NCLT exercises its judicial discretion and does not solely rely on the RP's report. This strengthens the oversight of the resolution process for personal guarantors under the IBC.