https://www.taxtmi.com/caselaws?id=126897 The Board for Industrial and Financial Reconstruction could appoint an operating agency under section 16(2) to conduct inquiry and collect material on whether a company was sick, and section 27 did not bar appointment of a secured creditor for that role. Regulation 40 permitted assistance from institutions and professionals, so the creditor's status did not by itself create disqualification or bias. A special investigative audit by independent chartered accountants, selected through a controlled process with scope for objections and material submissions, provided adequate safeguards. No legal prohibition or demonstrated prejudice was shown against the operating agency appointment or the audit directions. en-us Fri, 22 Oct 2010 00:00:00 +0530 Wed, 20 May 2026 15:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=126897 The Board for Industrial and Financial Reconstruction could appoint an operating agency under section 16(2) to conduct inquiry and collect material on whether a company was sick, and section 27 did not bar appointment of a secured creditor for that role. Regulation 40 permitted assistance from institutions and professionals, so the creditor's status did not by itself create disqualification or bias. A special investigative audit by independent chartered accountants, selected through a controlled process with scope for objections and material submissions, provided adequate safeguards. No legal prohibition or demonstrated prejudice was shown against the operating agency appointment or the audit directions. Case-Laws Companies Law Fri, 22 Oct 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=126897