Persons Authorised to file Applications under Bankruptcy Code in NCLT

Persons Authorised to file Applications under Insolvency & Bankruptcy Code [IBC] in National Company Law Tribunal [NCLT]

The National Company Law Appellate Tribunal [NCLAT] Judgment dated Sept. 20, 2017 wherein it has been held that a Power of Attorney [POA] Holder is not authorised to file proceedings under IBC and only an ‘Authorised Representative’ by the Board of Directors can file the same.

Background:

ICICI Bank had initiated CIRP against M/s Palogix, the Corporate Debtor for default in honouring its debt obligations. NCLT vide order dated May 16, 2017 accepted the application and appointed an IRP. The Corporate Debtor, M/s Palogix had not raised any dispute with respect to the existence of debt and default on their part.

The issue which was raised by the M/s Palogix that person initiating the Corporate Insolvency Resolution Process [CIRP] was authorised by a Board Resolution of 2002 and 2009, which was much before the IBC was enacted.

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