NCLT Is Bound To Appoint IRP Proposed By Corporate Debtor: Madras High Court

The Madras High Court has ruled that the NCLT (National Company Law Tribunal) is "bound to appoint the IRP (Interim Resolution Professional) proposed by the Corporate Debtor" in certain circumstances. This significant decision clarifies the NCLT's role in the initial stages of corporate insolvency resolution. While the NCLT has discretion, this ruling implies that if the corporate debtor's proposal for an IRP meets all statutory requirements and there are no specific disqualifications, the NCLT should generally accept it, streamlining the commencement of the insolvency process.