Authority: National Company Law Tribunal, Hyderabad Bench – II
Order Date: 19.06.2026
Case Overview
This order pertains to an Interlocutory Application (IA (IBC)/909/2026) filed within Company Petition IB/23/95/HDB/2026 under Section 95 of the Insolvency and Bankruptcy Code (IBC). The application challenged the appointment of a Resolution Professional (RP) in the matter involving SREI Equipment Finance Limited as the Petitioner and Althuru Mahesh Reddy as the Respondent. The applicant contended that the appointment process was flawed. The bench, comprising Shri Rajeev Bhardwaj (Member Judicial) and Shri Sanjay Puri (Member Technical), heard arguments from the applicant's counsel, Ms. Sravya from the office of K. Mamata Choudary.
The tribunal's reasoning focused on the procedural nature of the regulations under Section 97(3) of the IBC, which are intended to ensure only eligible persons are appointed as RPs. It acknowledged that the process of seeking confirmation from the Insolvency and Bankruptcy Board of India (IBBI) is time-consuming. To avoid such delays, Rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, empowers the IBBI to share a database of eligible RPs with the Adjudicating Authority. The NCLT confirmed it had used this IBBI-provided database to appoint the RP in this case. Crucially, the tribunal noted that the applicant had not leveled any specific allegations nor provided any material evidence to demonstrate the ineligibility of the appointed RP.
Final Outcome
The application was dismissed for lacking merit. The appointment of the Resolution Professional made by the Adjudicating Authority stands confirmed.
Topics: Insolvency Proceeding, Resolution Professional, NCLT Order