In a significant ruling, the NCLAT has upheld the resolution professional's right to obtain mall revenue records, deeming them vital for scrutinizing disputed transactions during the CIRP.
NCLAT Upholds Right to Revenue Disclosure in Dispute
The National Company Law Appellate Tribunal (NCLAT) has affirmed the right of a resolution professional (RP) to access revenue records of a mall, stating that such information is essential to scrutinize disputed transactions during the Corporate Insolvency Resolution Process (CIRP). The ruling rejects the notion that disputed ownership can serve as a justification for withholding relevant financial information.
This decision reinforces the investigatory powers of an RP and highlights the tribunal's commitment to transparency and accountability in insolvency proceedings. By allowing access to these records, the NCLAT aims to ensure that the resolution process is not impeded by ownership disputes that may obscure financial realities.
Practitioners should recognize the implications of this ruling, as it signifies the judicial endorsement of a proactive approach to handling financial inquiries and disputes in insolvency cases, ensuring that all relevant data is made available for effective resolution.
Citations
- NCLAT Order (2026) NCLAT Order No. 1450467
