https://www.taxtmi.com/caselaws?id=768723 The HC dismissed a petition challenging an IBBI circular dated 21.12.2023 that allowed creditors to recommend Resolution Professionals. The court held that Resolution Professionals serve merely as facilitators who compile facts and submit recommendatory reports, not as decision-makers. Since creditors can only recommend from the IBBI-empaneled panel, the ultimate nomination remains with IBBI. The adjudicating authority retains final appointment power under Section 97(5), and debtors can raise objections regarding conflicts of interest. The court found the circular was a pragmatic tool enhancing IBC efficiency without causing prejudice to debtors or guarantors, ruling it neither ultra vires nor violative of IBC provisions. en-us Tue, 08 Apr 2025 00:00:00 +0530 Sat, 12 Apr 2025 08:39:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768723 The HC dismissed a petition challenging an IBBI circular dated 21.12.2023 that allowed creditors to recommend Resolution Professionals. The court held that Resolution Professionals serve merely as facilitators who compile facts and submit recommendatory reports, not as decision-makers. Since creditors can only recommend from the IBBI-empaneled panel, the ultimate nomination remains with IBBI. The adjudicating authority retains final appointment power under Section 97(5), and debtors can raise objections regarding conflicts of interest. The court found the circular was a pragmatic tool enhancing IBC efficiency without causing prejudice to debtors or guarantors, ruling it neither ultra vires nor violative of IBC provisions. Case-Laws IBC Tue, 08 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768723