Interim Resolution Professional Is Empowered To Take Possession Of Assets Owned By Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has affirmed the authority of the Interim Resolution Professional (IRP) appointed under the Insolvency and Bankruptcy Code (IBC) to take possession of the assets belonging to the corporate debtor during the initial phase of the insolvency resolution process. The tribunal upheld that this power is essential for the IRP to effectively manage and protect the debtor's assets, maintain the going concern status where possible, and facilitate the smooth conduct of the corporate insolvency resolution process as mandated by the IBC. This ensures that the IRP can carry out their responsibilities without hindrance in the crucial early stages of the proceedings.