NCLAT stays NCLT ban on ex-bankers' appointment as resolution professionals

The NCLT order had cast doubt on debt resolutions of several companies including Videocon Industries and Essar Projects, where former bank officials are working as IRPs

The National Company Law Appellate Tribunal (NCLAT) last week stayed a recent order by the National Company Law Tribunal’s New Delhi Bench, which prohibited appointing a former bank official as independent resolution professional (IRP) of a bankrupt company because of the possibility of “bias”.
 
The NCLT order had cast a doubt on debt resolutions of several companies including Videocon Industries and Essar Projects, where former bank officials are working as IRPs, said a legal source. In its stay order dated January 17, the NCLAT said it would hear the matter again on February 3 and issued notices to all