Insolvency Professionals – An IBC Pillar Whose Systemic Support Needs Upgradation
Insolvency Professionals form a crucial pillar on which the entire edifice of the insolvency resolution process rests. During CIRP, the management of the Corporate Debtor is vested with the IRP/RP, who then stands in the position of the board of directors of the Corporate Debtor. Undoubtedly, this is an onerous task, but there is sheer lack of systemic support to the IP and the so-called pillar faces multitude of problems at ground level when he commences this task. It is incomprehensible that the IP is expected to fend for himself from the very inception of CIRP proceedings.
The Article suggests additional powers need to be given to the IRPs/RPs to augment their support system and has provided few suggestions on the same.
An IP cannot be perceived as a toothless tiger who is remote-controlled by the AA at all times. The objective should be to allow IPs to function with adequate freedom and support systems without compromising on the overall control to be exercised by the AA.