An Insolvency Professional becomes heart and brain of Company under Insolvency, Good reputation and character of a person is very important for appointment as an Insolvency Professional and the decision to determine as to whether a person is fit and proper to be appointed as Insolvency Professional is based on the subjective satisfaction of IBBI – Pooja Menghani Vs. Insolvency and Bankruptcy Board of India & Anr. – Delhi High Court
In this important judgment on registration of Insolvency Professional, Hon’ble High Court held that:
(i) An Insolvency Professional performs very important functions in the insolvency resolution process of a company. An Insolvency Professional in fact becomes the heart and brain of the company under the insolvency resolution process.
(ii) Discretion has been given to IBBI to ensure that the corporate insolvency process is clean and free.
(iii) Good reputation and character of a person is very important for appointment as an Insolvency Professional.
(iv) The decision to determine as to whether a person is fit and proper to be appointed as Insolvency Professional is based on the subjective satisfaction of the Board.
(v) While judging as to whether a person is fit and proper to be appointed as an Insolvency Professional his past actions and conduct cannot be ignored and the fact that immediate past was clean does not give a clean chit to the person that his candidature will be considered.
