Resolution Professional is ‘Occupier’ of Corporate Debtor’s factory as defined under Section 2(n) of the Factories Act, 1948 | For the violation or omission in the factory premises, Resolution Professional is responsible for the proceedings if any, initiated against Resolution Professional under Factories Act in his capacity as Occupier | The said proceedings will not be covered under Sec. 14 or 233 of IBC – Subrata Monindranath Maity v. The State – Madras High Court
In this landmark judgment, Hon’ble Madras High Court has held that:
(i) The protection to the resolution professional given under Section 233 of IBC is obviously only in respect of act done or intended to be done in good faith under the code. The failure or omission to provide safety measures in the factory cannot be stretched to inaction.
(ii) The resolution professional is the occupier of the factory (as defined under Section 2(n) of the Factories Act, 1948) and he cannot abdicate his duties and responsibility of providing necessary safety measures in the factory as mandated in the Factories Act.
(iii) The expression used in section 17 of the Code explicitly say that the resolution professional is the person who is vested with absolute control of the Corporate Debtor company. While so, for the violation or omission in the factory premises, Resolution Professional is responsible for the Proceedings if any, initiated against Resolution Professional under the Factories Act in his capacity as occupier. The said proceedings will not be covered under section 14 or 233 of the Code.
