Resolution Professional Becomes Functus Officio After Approval Of Plan, Ceases To Have Authority To File Fresh Application Under IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT) in Mumbai ruled that a resolution professional cannot file an application after the approval of a resolution plan. The case involved a resolution professional who sought to file an application for additional claims after the resolution plan was approved by the committee of creditors. The NCLT held that once the resolution plan is approved, the resolution professional’s role is limited to implementing the plan, and no new applications can be filed. The ruling aims to ensure finality and certainty in the resolution process, preventing delays and additional claims after the approval of the resolution plan. The decision underscores the importance of adhering to the timelines and procedures outlined in the Insolvency and Bankruptcy Code (IBC).