NCLAT Chennai Initiates Suo Motu Contempt Against Resolution Professional

The NCLAT Chennai Bench held that the conduct of the resolution professional amounted to an attempt to bypass and override its interim appellate orders.

The Court observed that despite clear directions keeping the CIRP in abeyance, the RP refused to hand over control of the company by adopting a self-serving interpretation of the stay order.

Terming this a “clever device” to sit over judicial directions, the Tribunal remarked that the resolution professional fraternity cannot remain “untouched by contempt” and needs to be taught a lesson.

Emphasising institutional authority, the NCLAT initiated suo motu contempt proceedings and directed the RP to file a response.

[National Company Law Appellate Tribunal, Chennai Bench v. Anil Kumar Khicha, IRP, ISPT India Pvt. Ltd.]