NCLT ban on ex-bankers appointment as Resolution Professionals - NCLAT

The National Company Law Appellate Tribunal (NCLAT) last week stayed a recent order by the National Company Law Tribunal’s New Delhi Bench, which prohibited appointing a former bank official as independent resolution professional (IRP) of a bankrupt company because of the possibility of “bias”.

The NCLT order had cast a doubt on debt resolutions of several companies including Videocon Industries and Essar Projects, where former bank officials are working as IRPs, said a legal source. In its stay order dated January 17, the NCLAT said it would hear the matter again. #casansaar (Source - Business Standard)