Whether COC approval is required to file avoidance application?

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A was appointed as Resolution Professional of PQR Limited. Transactional auditor pointed out some avoidance transaction and thus suggested A to file the avoidance application before NCLT. In the meantime, B, suspended director, filed application challenging the constitution of COC. A submitted that since the very constitution of the COC in question, the proprietary demand to keep such application on hold till the order in the reserved matter is pronounced. IBBI disciplinary committee held the Code and regulation 35A of the CIRP regulations clearly specify that onus of filing avoidance transaction rests with the RP. For filing the same, CoC’s permission is neither necessary nor a pre-condition.[1]

 

 


[1] No. IBBI/DC/111/2022, dated 05/07/2022

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