NCLT (Guwahati Bench) : In IDBI Bank Limited vs. Kitply Industries Ltd.

Where the financial creditor instead of proposing name of Insolvency Resolution Professional (IRP) for appointment by Adjudicating Authority travels beyond its assigned territory appointing IRP, such minor lapses have to be ignored if the person concerned otherwise fulfils the requirements which law requires.

The power of appointment of Insolvency Resolution Professional (IRP) is vested with the Adjudicating Authority, where in a Corporate Insolvency Resolution Process application, instead of proposing name of IRP the financial creditor appointed the IRP, travelling well beyond its assigned territory, the small and minor lapses occurring in naming the IRP by the financial creditor cannot be allowed to overthrow the entire proceedings under section 7 if the person concerned otherwise fulfils the requirements which law wants to see in an IRP.

Link : http://ibbi.gov.in/webadmin/pdf/order/2018/May/1st%20May%202018%20in%20the%20matter%20of%20Kitply%20Industries%20Ltd.%20C.%20P.%20No.%20(IB)-02-GB-2018_2018-05-07%2011:00:24.pdf