Adverse remarks cannot be passed by Adjudicating Authority against RP for performing his duties Accordance to CoC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) ruled that adverse remarks cannot be passed against the Resolution Professional (RP) for performing their duties in accordance with the Committee of Creditors (CoC) during an insolvency process. The case involved an RP being penalized for carrying out their duties as prescribed by the CoC, which was deemed inappropriate by the tribunal. The NCLAT emphasized that the RP's actions are guided by the CoC's decisions, and penalizing them for fulfilling their role undermines the insolvency process. This decision clarifies the extent of the RP’s authority and reinforces the principle of collective decision-making in insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).