Pre-adjudicatory insolvency process remains non-appealable at Section 99 stage; resolution professional's report is only recommendatory.

Sections 95 to 100 of the Insolvency and Bankruptcy Code create a pre-adjudicatory process in which the resolution professional's role under Section 99 is facilitative and recommendatory, with no final determination of rights until the adjudicating authority acts under Section 100. An order appointing a resolution professional and directing submission of a report at that stage does not finally decide any controversy, does not itself deprive a party of a legally protected right, and is therefore not treated as an appealable merits determination. The interim-moratorium does not expand the right of appeal. The appeal was held premature and not maintainable at the Section 99 stage.

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Issues: Whether a company appeal is maintainable against an order appointing a resolution professional and directing submission of a report under Section 99 of the Insolvency and Bankruptcy Code, 2016, before the adjudicating authority reaches the stage of considering acceptance or rejection under Section 100.

Analysis: The statutory scheme under Sections 95 to 100 contemplates only a facilitative exercise by the resolution professional at the pre-adjudicatory stage. The report to be submitted is recommendatory in nature, and no judicial determination of rights takes place until the adjudicating authority acts under Section 100. In that setting, an order passed at the Section 99 stage does not finally adjudicate any controversy, does not cause deprivation of a legally protected right, and cannot be treated as an appealable determination on merits. The interim-moratorium also does not enlarge the right of appeal or convert the preliminary process into a final adjudication.

Conclusion: The appeal was premature and not maintainable at the Section 99 stage, and the dismissal was in favour of the respondent.

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