Resolution Professional At S.94/95 Stage Cannot Decide On Maintainability Of Petition By Entering Into Merits: Karnataka High Court

The Karnataka High Court has ruled that the Resolution Professional (RP) under Sections 94 and 95 of the Insolvency and Bankruptcy Code (IBC) cannot decide on the maintainability of a petition at the initial stage. The court emphasized that the role of the RP is administrative and not adjudicatory. The RP’s duty is to verify the application and submit a report to the Adjudicating Authority, which then decides on the maintainability of the petition. The court clarified that the RP should not enter into the merits of the case at this stage. This ruling underscores the administrative nature of the RP’s role and ensures that the adjudicatory functions remain with the appropriate judicial authorities, maintaining the integrity of the insolvency resolution process.