Director Of Liquidated Company had no Power When RP Took Charge as per IBC: Telangana HC Quashes Proceedings Against Ex-Director Of Company

The Telangana High Court has quashed proceedings against the ex-director of a liquidated company, ruling that the director had no power once the Resolution Professional (RP) took charge under the Insolvency and Bankruptcy Code (IBC). The court emphasized that the director's role ceased once the company entered the insolvency process and the RP assumed control. The ruling clarifies the legal boundaries of authority in the insolvency process, stressing that directors cannot act independently during this period. This decision is significant for the corporate sector as it reinforces the role of the RP in managing a company’s affairs during insolvency and highlights the importance of adhering to IBC regulations to prevent confusion over decision-making authority.