RP cannot wear the hat of ‘Former RP’ to pursue avoidance application: Delhi HC – By Adv Aniketa Prasad and Adv Aditya Gauri
In a judgment dated 26th November, 2020, a single judge bench of Justice Pratibha M Singh of Delhi High Court while adjudicating the matter between M/s Venus Recruiters Pvt. Ltd. v. Union of India (2020) ibclaw.in 41 HC, held that an avoidance application relating to preferential transaction under section 43 of Insolvency and Bankruptcy Code shall not survive beyond the conclusion of the insolvency resolution process.
The court observed that the continuation of the Resolution Professional for the purpose of prosecuting an avoidance application after the completion of insolvency resolution process (CIRP) is beyond the contemplation of the IBC.