The NCLAT has clarified that Resolution Professionals can secure possession of corporate assets without needing to file separate eviction suits during the CIRP.
NCLAT Affirms RP's Authority to Reclaim Corporate Debtor’s Assets
The National Company Law Appellate Tribunal (NCLAT) has ruled that Resolution Professionals (RPs) are empowered to recover possession of a corporate debtor’s assets without having to initiate separate eviction proceedings during the Corporate Insolvency Resolution Process (CIRP).
This decision affirmed the provisions of the Insolvency and Bankruptcy Code, highlighting the extensive powers granted to RPs to facilitate asset recovery as part of the resolution process. The tribunal recognized that such authority is essential for the effective functioning of the CIRP.
“Insolvency framework empowers Resolution Professionals to secure possession of corporate assets without resorting to civil eviction suits,” the NCLAT noted.
This ruling is particularly relevant for insolvency practitioners, as it streamlines the asset recovery process, allowing RPs to act decisively without the delays that could arise from additional civil proceedings.
Citations
- Corporate Debtor Decision No. 789 of 2026 NCLAT
