Madras High Court: The Successful Working Of IBC Rests On Diligence And Integrity Of IRP And RP

The Madras High Court emphasized the crucial role of Interim Resolution Professionals (IRPs) and Resolution Professionals (RPs) in the insolvency process, stressing fairness and transparency. It noted their responsibility to secure the interests of all stakeholders, especially operational creditors, starting from the preparation of statements to the final resolution. \r

Highlighting the impact of their diligence on decisions made by the Committee of Creditors (CoC), the court underlined the necessity for professionalism and due diligence in accessing and utilizing information. It warned against negligence, which could adversely affect operational creditors, particularly those from MSMEs. \r

The court asserted that fairness begins with the IRP and RP and extends to the treatment of operational creditors by the CoC, ultimately promoting transparency and safeguarding creditors' rights.