Ex- employee of Financial Creditor can be a Resolution Professional

By INSOL India - Editorial Team Posted On : October 31, 2020

Supreme Court, in the case of Metenere Ltd. where SBI is the financial creditor and its ex-employee is receiving pension, observed at the outset that NCLAT’s approach was not correct that merely Resolution Professional who remained in the service of SBI and is getting pension, was disentitled to be Resolution Professional. NCLAT held that there could be bias, but Supreme Court found that there is no such disqualification as per Regulation 3(1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.