Pre-admission challenge under the Insolvency Code: appointment of resolution professional under Section 97 is not interferable at that stage.

Sections 95 to 100 of the Insolvency and Bankruptcy Code are described as a sequential pre-admission process in which the Adjudicating Authority appoints the resolution professional under Section 97, who then examines the application and submits a report under Section 99. The analysis states that these preliminary steps do not determine any right of the personal guarantor, so no enforceable grievance arises before an order under Section 100. It further notes that objections to the report remain available at the appropriate stage. On that basis, the challenge to the Section 97 appointment is stated to be not maintainable at the pre-admission stage.

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Issues: Whether the appointment of the resolution professional under Section 97 of the Insolvency and Bankruptcy Code, 2016 in proceedings initiated under Section 95 could be challenged by the personal guarantors at the pre-admission stage.

Analysis: The statutory scheme of Sections 95 to 100 was read as a sequential pre-admission process in which the Adjudicating Authority is empowered to appoint the resolution professional under Section 97, and the professional thereafter examines the application and submits a report under Section 99. The pre-admission steps were treated as not involving adjudication of any right of the personal guarantor. The challenge was also tested against the governing principle that no enforceable grievance arises before an order under Section 100, and that objections to the report remain available at the appropriate stage. On that basis, the appointment of the resolution professional was held not to cause legal prejudice or confer a maintainable cause of action for interference at that stage.

Conclusion: The challenge to the appointment of the resolution professional was held not maintainable, and the appeals were dismissed.

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