Police duty to act on cognizable complaints filed by an Interim Resolution Professional and begin investigation

Where an Interim Resolution Professional files a complaint disclosing a cognizable offence, the police are required to act on it in accordance with law. The text states that the IRP performs statutory functions under the Insolvency and Bankruptcy Code, 2016 and the related regulations, and that the Station House Officer has a legal obligation to take cognizance of such a complaint under Section 190 of the Code of Criminal Procedure, 1973. Registration of the case and investigation must then follow. On that basis, directions were issued to the concerned police and administrative authorities to consider and act upon the complaint.

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Issues: Whether the police authorities were required to take cognizance of the complaint filed by the Interim Resolution Professional and proceed in accordance with law where the complaint disclosed a cognizable offence.

Analysis: The order proceeds on the footing that the Interim Resolution Professional performs statutory functions under the Insolvency and Bankruptcy Code, 2016 and the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. It records that, where a complaint discloses commission of a cognizable offence, the Station House Officer is under a legal obligation to take cognizance of the complaint under Section 190 of the Code of Criminal Procedure, 1973 and that registration of the case and investigation must follow. On that basis, notice was directed to the concerned police and administrative authorities and an instruction was issued to the police to act on the complaint.

Conclusion: The directions were issued in favour of the applicant, requiring the police to consider and act upon the complaint in accordance with law.

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