Whether Resolution Professional ceases to have any authority after approval of Resolution Plan to file an application for avoidance of transactions under the IBC – Mr. Ram Ratan Kanoongo Vs. Mr. Pramod Goenka and Ors. – NCLT Mumbai Bench
Hon’ble NCLT Mumbai Bench held that the timelines under Regulation 35A are directory and not mandatory in nature. Section 25(2)(j) of the Code mandates the Resolution professional to file application for avoidance of transactions in accordance with Chapter III, if any. The Resolution Professional becomes functus officio after the approval of plan and he ceases to have authority to file any fresh application under the Code, except to prosecute the applications already pending before this Tribunal prior to approval of the Resolution Plan or before appellate authorities in relation to such pending application before this Tribunal or pending thereat at the time of approval of Resolution Plan.